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ECONOMICS OF EFFICIENCY 



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THE MACMILLAN COMPANY 

NEW YORK • BOSTON • CHICAGO • DALLAS 
ATLANTA • SAN FRANCISCO 

MACMILLAN & CO., Limited 

LONDON • BOMBAY • CALCUTTA 
MELBOURNE 

THE MACMILLAN CO. OF CANADA, Ltd. 

TORONTO 



ECONOMICS OF EFFICIENCY 



BY 



NORRIS A. BRISCO, A.M., Ph.D. 

AUTHOR OF " ECONOMICS OF BUSINESS," " THE ECONOMIC POLICY 

OF ROBERT WALPOLE," DEPARTMENT OF POLITICAL 

SCIENCE, COLLEGE OF THE CITY 

OF NEW YORK 



"Ntio ^axk 

THE MACMILLAN COMPANY 

1914 

Ali rights reserved 



6^ 



Copyright, 1914, 
By the MACMILLAN COMPANY. 



Set up and electrotyped. Published November, 1914. 



J. 8. Gushing Co. — Berwick <fc Smith Co. 
Norwood, Mass., U.S.A. 



©G!,A387353 
4^ 



MY SON NORRIS 



PREFACE 

The growing complexity of the American industrial 
system and the increasing keenness of competition have 
introduced a new era in business. Goods are produced 
and sold on small margins, and the extent of profits de- 
pends in a large measure upon efficiency. A new busi- 
ness science has grown up in our midst, and it may 
be called the science of efficiency. Efficiency is the 
watchword of future industrial progress, growth, and 
expansion. The nation which produces with the greatest 
efficiency will be the one which will lead the van of 
industrial nations. The business man who heeds the 
edicts of efficiency will be the one who will be able to 
produce at the least cost, and to command markets. 

The aim of efficiency is the elimination of waste. The 
new science of efficiency bases business activity upon 
knowledge. Knowledge takes the place of guesswork 
and ignorance. Efficiency demands a scientific study 
of the different phases of work to ascertain how it can 
best be done with the least expenditure of energy, time, 
and materials. It is giving business a critical aspect, 
by making a study of how things should be done and 
how they are done. The chief aim of this book is to 
open the eyes of business men to the underlying 
principles of efficiency, to emphasize the importance 
of these principles, and to explain their methods and 
workings in such a way that all business men will profit. 

NORRIS A. BRISCO. 
New York, 

Oct., 1914. 



CONTENTS 

CHAPTER I 

ECONOMIC NEED OF EFFICIENCY 

PAGE 

Industrial Efficiency a New Study — Effects of Factory System — 
New Science of Business — Human Factor Neglected — Ex- 
tent of Wastes — Efficiency the Goal — Conservation of 
Workers — Accurate Knowledge of Workers — Requisites — 
Specialization — In Factory — Effects on Labor — Dangers 

— Demands of Industry — Requisites for Future Industrial 
Progress — Standardization — Extent — Kinds — Competition 

— Led to Lower Costs — 'Varieties of Utilities — Factors in 
Production — Land — Labor — Capital — Management — 
Business Men Should Heed Efficiency 1 

CHAPTER II 

EFFICIENCY 

Evolution of the Efficiency Movement — Efficiency — Meaning — 
How to Ascertain — Denominator — Computed] Efficiencies 

— Efficiency in Public Administration — Wastes in the Edu- 
cational Systems — Applying Efficiency to Work — How to 
Introduce Changes — Wastes — Kinds — How to Eliminate 

— Strenuousness vs. Efficiency — ^Efficiency Protects Health 

— Importance of Knowledge — Method of Obtaining — Im- 
portance of Scientific Study of Business — Search for Ideas 

— The One Best Way — How to Attain — Problems to be 
Solved in Efficiency 27 

CHAPTER HI 

MANAGEMENT AND THE PLANT 

Foundation of Efficient Management — Organization — Impor- 
tance — System — Requisites — Advantages — Coordination 

— Handling of Details — Requisites for Reports — Sugges- 



X CONTENTS 

PAGE 

tions and Ideas — Importance — Cost System — Requisites — 
Advantages — Plant Location — Design of Buildings — High 
Grade Machines and Tools — Quality — In Buying — In Pro- 
duction — Savings from Waste Products — Storage of Ma- 
terials — Store Room — Moving Goods in a Plant — System 
in Shipping Goods — Routeing Goods — Inventory — Buying 

— Selling — Requisites — Advertising — Requisites — Credit, 

its Place in Business 45 

CHAPTER IV 

MANAGEMENT AND LABOR 
Importance of Human Factor in Business — Cooperation — Per- 
sonality — Rights of Workers Respected — Duty of Em- 
ployees to Employers — Enthusiasm — Loyalty — Importance 
of Sympathy — Importance of Incentive — Methods of Han- 
dling Men — Driving — Leading — Permanence in Working 
Force — Methods of Holding Men in Organization — Pro- 
motion from the Ranks — Efficiency and Health — Content- 
ment — Tardiness — Punctuality — How Ascertained — 
Irregularity — Causes — Soldiering — How to Eliminate — 
Authority Clearly Defined — Discipline — Methods of En- 
forcing — ■ Qualities Essential in Superintendents ... 69 

CHAPTER V 

METHODS 
Guesswork and Ignorance in Business — Intelligent Direction of 
Work — Old Method of Doing Work — Wasteful Effects — 
How to Ascertain Best Way — Best Conditions of Work — 
Theory vs. Practice — Time Study — -Motion Study — Requi- 
sites for Finding Standard Methods — Time for Task — Im- 
portance of Rest — Standard does not Mean Perfection — 
Responsibility upon the Management — Adoption of Stand- 
ard Methods — Supervision — Importance — Cooperation of 
Workers — Just Remuneration — Methods and Time Work 

— Planning Department — Job Work — Efficiency and the 
Best Way 89 



CONTENTS xi 

CHAPTER VI 

HIRING OF LABOR 

PAGE 

Importance of Skilled Workers — Buying Machines vs. Hiring 
Labor — Requisites for Efficient Labor Force — Uncertainty 
of New Worker — Common Practice in Hiring Men — Ex- 
perimenting with Men — Evils of Constant Hiring and Firing 

— Requirements of a Place — Experts in Hiring Men — Mis- 
fits — How to Fill a Vacancy — Employment Department — 
Requisites for Selection of Workers — Fundamentals for 
Efficient Work — Health — Sight and Hearing — Signs of 
Health — Nervous System — Barriers to Employment — 
Habits — Age Limit — Drifters — Personal Letters — Intel- 
ligence — Thrift — Industry — Characteristics which Pro- 
mote Efficiency — How to Detect — Skill — Experience — 
Limitations and Possibilities of Men — Selection of Appren- 
tices — Card Record — Efficiency and the Buying of Labor . 106 

CHAPTER VII 

TRAINING 
Changes from Industrial Revolution — Training of Workers Neg- 
lected — Importance of Trained Men — Apprenticeship System 

— Characteristics — Abuses — Modified Apprenticeship — 
Sudden Demand for Skilled Workers — Opposition of Unions 

— Industrial Intelligence — Adaptability — Training in Best 
Methods — The Corporation School — Methods of Instruc- 
tion — Instructors — Where Possible — Character of Train- 
ing — Shop Instruction — Practice Shops — Cooperative 
Industrial Schools — Industrial Evening Schools — Indus- 
trial Training in Public Schools — Industrial Schools — 
Trade Schools — Trade Preparatory Schools — Manual Train- 
ing Schools — Vocational Schools — Best System for Train- 
ing Workers 131 

CHAPTER VIII 

HABITS 
Habit, Its Meaning — Instinct vs. Habit — Nervous System and 
Habit Formation — Nerve Paths — Repetition — Results of 



xii CONTENTS 

PAGE 

Proper Habits of Work — Identical Repetition — Habits of 
Industry — Importance — Wastes — How to Ascertain Best 
Methods — Training — Importance — Classes in Habit For- 
mation — Apprentice — Skilled Worker — Why Employees 
Oppose Changes — Requisites for Changes — Conversion of 
New Methods into Habits — Habits of Living — ■ Of Eating 

— Classes of Habits — Effects of Intemperate Habits — 
Value of Habit in Industrial Society 159 

CHAPTER IX 

FATIGUE 

Causes — Effects — Tower of Work Varies with People — Re- 
serve Force — Effects of Toxic Impurities — Fatigue and 
Memory — Cause of Stupidity — Efficient Cycle — Sleep — 
How Much is Necessary — Importance of Food and Health 

— Relaxation — Antidotes to Fatigue — Rest Periods — 
Accidents — Effects of Dirt, Dust, and Noise — Effects of 
Speeding — Limits of Work — Length of Working Day — 
Training in Resisting Fatigue — Real and False Fatigue — 
Effects of Sitting at Work — Methods of Conserving Energy 

— Wastes from Fatigue 178 

CHAPTER X 

WORKING ENVIRONMENTS 

Health and Efficiency — Effects of 111 Health — Conservation of 
Health — Importance — Environment and Efficiency — 
Lighting — Natural vs. Artificial — Daylight — Windows — 
Electric — - Advantages over Gas — Lamps — Overhead and 
Individual — Conservation of the Eye — Eyestrain — Inju- 
rious Lighting Conditions — Glare — Fhckering — Strong 
Contrasts — 111 Effects of Gas — Effects of Foul Air — Value 
of Pure Air — Air Conditioning — Ventilation — Natural — 
Artificial — Temperature — Air Circulation — Humidity — 
Dust — Varieties — Effects — Prevention — Fumes and 
Gases — Effects on Workers — Environments and Ignorance 199 



CONTENTS xiii 

CHAPTER XI 

WELFARE WORK 

PAGE 

Drain of Sickness upon Industry — Medical Department — Func- 
tions — Emergency Hospital — Physical Examination — 
Treating Ailments — Dispensary — Home Environments — 
Encourage Proper Habits of Living — Medical Department 
and Efficiency — Nutrition — Indigestion — Lunches — How 
to Assure Proper Lunches — Drinking W^ater — Sources — 
Lavatories — Individual Lockers — Facilities for Baths — 
Rest and Recreation Rooms — Varieties of Welfare Work 

— Benefit Associations — Educational Work — Club House 

— Monthly Papers — Clubs — Savings Banks — Vacations — 
Pensions — Prizes for Home Keeping — Business Motive in 
Welfare Work 224 

CHAPTER XII 

ACCIDENTS 

Classes of Accidents — Unavoidable — Preventable — Need of 
Statistics — Losses from Accidents — Study of Accident Pre- 
vention — Divisions — Causes — Ignorance — Carelessness 

— Clothing — Standard Dress — Poor Lighting — Cleanli- 
ness — Breakages — Insufficient Space — Slippery Floors — 
Alcohol and Accidents — Fatigue — -Intervals of Rest — 
Safeguards — Old View — Dangers in Oiling and Cleaning 
Machinery — Protection of Eyes — Preventive Spirit — 
Museum — Management and Accidents — Emergency Room 
First Aid — Employment of Children — Factory Inspection 

— Compensation in Accidents — Necessary Measures in Ac- 
cident Prevention 252 

CHAPTER XIII 

FIRE PREVENTION 

Losses from Fire — Reasons for Excessive Fire Losses — Func- 
tions of Fire Prevention — Chemistry of Fire — Combustion 

— Spontaneous Combustion — Favorable Conditions — 



xiv CONTENTS 

PAGE 

Causes of Fire — Matches — Smoking — Gas-jets — Oil 
Lamps — Precautions in Electric Wiring — Methods of Heat- 
ing — -Dangers in Open Spaces — Dangers in Dust — Auto- 
matic Fire Alarms — How to Install — Manual Alarm Boxes 
— Fire Patrols — Automatic Sprinklers — Operation — Fire 
Pails — Chemical Extinguishers — Standpipes — Fire Es- 
capes — Philadelphia Fire Tower — Fire Walls — Fire 
Drills — Fire Protection as a Science 284 

CHAPTER XIV 
WAGES 

Importance of the Wage Question — Requisites for its Solution 

— Parties to Wage Problem — Various Systems of Pay — 
Time Wages — How Fixed — Disadvantages — Individual 
Records — Piece Rates — Rate Cutting Cause of Trouble — 
Guesswork — Rate Fixing — The Task and the Rate — How 
to Establish a Just Rate — Essentials — Duties of the Em- 
ployee — Classes of Workers — Health Precautions — 
Workers' Share in Fixing Rates — Profit Sharing — Method 
of Distributing Profits — Disadvantages — Contract System 

— How it Operates 314 

CHAPTER XV 

SCIENTIFIC PIECE-RATE SYSTEMS 

Halsey Premium Plan — How it Operates — Ascertaining of 
Standard Time — Precautions — - Rowan Premium System — 
How it Operates — Gantt Bonus System — How Standard 
Time is Ascertained — Instructions — Elimination of Guess- 
work — Soldiering Eliminated — Health Precautions — The 
Bonus — Reward for Foremen — Differential Piece Rate 
System — Requisites — Instruction Cards — Precautions in 
Fixing Tasks — System in Operation — Task Idea in Day 
Work — Emerson EfBciency System— System in Operation 

— Piece and Job Work — Remuneration Proportionate to 
Output 340 



CONTENTS XV 

CHAPTER XVI 
ORGANIZED LABOR AND EFFICIENCY METHODS 

PAGE 

Trade Union, Its Meaning — Unscrupulous Leaders — Exploita- 
tion Unjust — Progress and Elimination of Work — Em- 
ployees Suspicious of Employers — Opposition to New Ma- 
chines — Effects on Labor — Wages and Output — Efficiency 
and Protection of Workers — Intellectual Development — 
Care of Aged Workers — Pensions — Opposition to Piece 
Rate — Proper Piece Rates Benefit Labor — Forms of Wage 
Bargaining — Individual — Collective — Union Demands, 
Based on Guess — Aims of Unionism — Ignorance of Mean- 
ing of Efficiency 359 



ECONOMICS OF EFFICIENCY 

CHAPTER I 

The Economic Need of Efpiciency 

This is the age of industry. Industrial achieve- 
ment is the aim and the goal of all civilized nations. 
National progress and growth are based upon industrial 
industrial progress. Industrial advancement efficiency, a 
has been rapid, and to-day the world is progres- ^®^ study, 
sing with greater rapidity than ever before. D evelopments 
and improvements in every niche of industrial Hfe follow 
one another in rapid succession. They are the rewards 
of tireless industry, of superior abiHty, and of genius. 
American genius is second to none in the world. It has 
devoted itself chiefly to conquering the forces of nature, 
devising labor-saving machinery and devices, and making 
improvements in facilities of transportation and of 
transmission of intelHgence, The last few years have 
opened a new field, and new problems have presented 
themselves for American genius to solve. This new field 
is industrial efficiency. Its borders have hardly been 
touched, and American genius must be directed to its 
domains. If so, the revelations which will result will be 
as astonishing as those resulting from the industrial revo- 
lution of the eighteenth century. American genius has 
not failed in the past, and will not in this case. The 
future promises in the new field of efficiency, industrial 
improvements and developments which will make the 



2 ECONOMICS OF EFFICIENCY 

industrial progress and growth of the twentieth century 
greater than the phenomenal record of the nineteenth. 

j Manufactures have developed, in less than two cen- 
turies, from mere hand and household industries to those 
Evolution of machine and factory. For thousands of 
of manufac- years previous, goods for the satisfaction of 
turing. ^u ^Yie wants of man were made in households, 

or in simple workshops adjacent thereto. During the 
early part of the eighteenth century, the worker per- 
formed his work in his own home, where he provided raw 
material, owned his own tools, furnished the motive power, 
which was his muscles, and was his own master. By the 
middle of the century, many changes in the industrial 
system had taken place, and considerable capital was 
used in manufacture. Merchants grew rich by fur- 
nishing raw material to workers, paying them at piece 
rates to produce finished articles, and selling these in 
markets. By this time, many experiments and successful 
attempts had been made to economize in production 
by the application of capital through labor-saving devices 
and machines. But the great mechanical inventions 
took place in the period from 1 760-1 790. This was 
followed by the discoveries of the application of steam 
power, and commencing with 1830, with marked improve- 
ments in facilities of transportation on land and water. 

The various inventions introduced so many changes in 
the industrial system that the process of change is called 
Pg gj the Industrial Revolution. The workers were 

ment under Called upon to attend machines, and to work 
the factory in workshops owncd by the employer. The 
system. grouping of laborers and machines in buildings 
for the purpose of production is known as the factory 
system. The factory and not the home became the unit 

; of production. With the increase of capital and the im- 
provement of machinery, the factory made it possible 



THE ECONOMIC NEED OF EFFICIENCY 3 

to manufacture goods in larger quantities, and of a more 
varied nature. New improvements in facilities of trans- 
portation opened larger markets, and to meet the in- 
creased demand, production on a larger scale followed. 
The development under the factory system made the 
modern business enterprise possible. 

The factory system with its extensive use of machin- 
ery, power, and capital, combined with extensive divi- 
sion of labor, introduced new problems of ad- jhe factory 
ministration. The small business enterprise system and 
with its simple organization and methods, ^^^°'^' 
so characteristic of the domestic system, gave way to 
the large business unit with its complicated organization 
and complex methods. Intensive organization became 
a necessity, and the independent worker of the domestic 
system became a part of an organizationjunder the guid- 
ance of a new official, the manager^ \ A clear SLndTdefinite 
line was gradually drawn between managerial abiHty 
and labor. The laborer became a specialist, and was 
deprived of all responsibility except that of doing effi- 
ciently the task assigned him. The present Labor and 
industrial system has been a development managerial 
from the simple organization to the complex, ^^^'^y- 
a process of evolution. Each stage of the development 
has been attended by labor problems, social difficulties, 
and class confficts. The inattention of employers to 
the new problems has been the chief cause of the numer- 
ous clashes between workers and employers. Many 
of the clashes and much of the antagonism which now 
exists between the two great factors of production could 
have been prevented if employers had recognized from 
the beginning the proper place of labor in our industrial 
system. 

The nineteenth century has been frequently called 
the century of the machine. Successful industrial man- 



4 ECONOMICS OF EFFICIENCY 

agement was concerned largely with obtaining greater 
e£Q.ciency through two sources : j&rstly, the acquiring of 
Progress ^ more highly efficient plant through more 
and efficient buildings and arrangement, and sec- 

markets, ondly, the acquiring of more improved and 
specialized equipment for the different processes. Pro- 
duction was greatly increased which necessitated more 
extensive markets. Manufacturers reaHzed that indus- 
trial development was dependent upon markets. The 
question of markets has always been a fundamental one 
in industrial progress. Improved machinery and produc- 
tion on a larger scale drove the manufacturer to extend 
his field from the locality to the nation, and further im- 
provements made more extended markets an absolute 
necessity. With the entrance of our commodities into 
the world's markets, competition became more intense, 
and the question of costs became more important, but 
during the nineteenth century, the average employer 
in his efforts to lower costs centralized his attention 

upon buildings, equipment, machinery, and 
STusSesr niethods. Near the close of the century, a few 

more enterprising employers had their atten- 
tion attracted to the human element, the most important 
factor in production, and this attraction is the beginning 
of a new science of business, the science of efficiency, 
which is a secure and sound foundation for further 
growth and greater industrial progress. 

It is astonishing that it was hardly more than a quarter 
of a century ago that employers realized that men and 
Three prob- ^^t money Were the determining factors in 
lems in pro- commercial and industrial undertakings, 
duction. Three important problems enter into produc- 
tion, the material, the machine, and the labor. The 
keen competition arising from entering foreign markets 
drove manufacturers to tax their ingenuity to devise 



THE ECONOMIC NEED OF EFFICIENCY 5 

methods for lowering costs. Attention first turned to 
improved machines, equipment, and economies arising 
from large-scale production. The closer study de- 
manded by increasing competition made clear the limi- 
tation upon machines and equipment. Atten- Attention to 
lion was directed to the labor factor, and busi- the human 
ness men then recognized the importance of the ^^^^°^- 
human factor. This factor, so long neglected, has come 
into prominence as the one to be depended upon to lower 
costs, make possible successful competition, and pave 
the way for greater industrial growth and expansion. 
The human factor is the most difi&cult one in production, 
and the most important in the keen competitive activity 
of the present industrial struggle. 

Machines have been given special study since the in- 
troduction of the factory system, but the human factor 
has been neglected. Machines depend for Human 
their output upon the labor attending them, factor long 
and the worker does the real work of industry, ^^egiected. 
Why should he not be studied to ascertain, as in the 
case of machines, if wastes exist, or if better methods 
can be devised for doing work, so as to increase the out- 
put with the same physical and mental exertion ? Eco- 
nomic necessity in meeting competition drove manu- 
facturers to pay attention to the human factor, and to 
give it closer study in order to devise methods of lower- 
ing costs, so as more successfully to compete in home 
and distant markets. 

Manufacturers were amazed at the extent of the 
wastes which were found in their plants. Wastes of 
material, time, and energy were found every- 
where. A prominent manufacturer declared ^^tes° 
that they were getting only about 50 per cent 
of the ability of workmen in their factory. Another 
stated that few shops produced more than 60 per cent 



6 ECONOMICS OF EFFICIENCY 

of the work that it would be possible for them to pro- 
duce with the same working force and the same physical 
Problem to equipment. The chief problem which arose 
eliminate was how to eHminate these wastes. How can 
wastes. g^j^ industrial country hampered with the pres- 

ence of wastes compete with one with the wastes par- 
tially or nearly wholly eliminated ? It is impossible. 
It is a dollars-and-cents proposition, and when manu- 
facturers reaHze this, they will pay heed to the condi- 
tions existing in their plants, and make endeavors to 
eliminate as much waste as possible. The goal is the 
obtaining of the greatest possible output of the highest 
quaHty, and with the least expenditure of material, 
time, and energy, but at the same time not in any way 
impairing the health of the workers. The work of 
studying conditions of material, machines, and labor 

to ascertain methods for reaching the goal and 
the goaT^' ^^ putting the methods into practice is called 

efl&ciency. Efficiency is the goal in industry. 
The nation which nearest approaches this goal in its 
industrial and business pursuits will be the one which 
will lead the van of industrial nations. Efficiency enters 
every field of business activity and is not confined to 
manufacturing enterprises. Efficiency methods will 
make this nation the greatest of all industrial nations, 
and in an enterprise will be the greatest guarantee of 
success. 

Human activity is the most valuable of all factors 
which enter into our business life, yet until recently, 
Greatest of l^ss than two decades ago, little or no system- 
all wastes, atic thought was given to the protection and 
that of labor, ^j^g conservation of the human element in busi- 
ness. The greatest of all wastes is that of labor. It is 
all the more serious because it is the human factor which 
is being wasted, and this factor has always been, and 



THE ECONOMIC NEED OF EFFICIENCY 7 

will always be, the greatest factor in every branch of 
business activity. What a saving would result to this 
nation if we could eliminate, say, 10 per cent of the wastes 
of the human element, and how much it would mean 
to laborers if we could increase the percentage to forty ! 
Such saving would not demand a greater expenditure 
of energy, but a better directed energy. Manufacturers 
would also profit, as it would lower their costs of pro- 
duction, and would place them in a position more suc- 
cessfully to compete in foreign markets. 

The ehmination of wastes is the greatest problem in 
every form of business activity. Wastes are found in 
every factor of production. The greatest 
exist with the human factor, and the most ^^ effidency^ 
difficult place to save waste is with this factor. 
This presents the most serious and the most difficult 
problem confronting business men. The new study of 
efficiency is concerned with the ehmination of all wastes, 
but its most difficult task is the ehmination of the wastes 
of the human factor. So overshadowing is the human 
factor that its study is the essence of efficiency. It 
is a dollars-and-cents proposition, and is of vital interest 
to every one engaged in business activity. Re- conserva- 
cently, the American people have been aroused tion of 
to the need of conservation. Attention was ^°^^^^^- 
aroused, and was focused upon wastes of forests, rivers, 
mines, and farm lands. No attention was given to the 
greatest waste, the waste of human beings, more terrible 
and appalling than all the others. This was unknown, 
and people were in ignorance of its extent, until necessity 
drove the business man to study the human factor in 
order to discover means of lowering costs. 

The most valuable resources of a nation are its own 
people, and it is only recently that employers are real- 
izing this. Human hands and brains furnish the bases 



8 ECONOMICS OF EFFICIENCY 

of great industrial growth, and are the foundation upon 
which our future industrial extension will be based. 
The most valuable possessions of a workman 
should con- ^^^ ^is health, strength, and intelligence, 
serve as The Conservation of health and strength, the 
well as prolongation of working life, and the preven- 

tion of disease are problems which affect 
the nation at large, and every employer in particular. 
Human life is gradually being recognized as a business 
asset. Employers are realizing the fact that it is a 
cold business proposition, and that it pays to conserve 
the health and the strength of employees. It is a func- 
tion of this industrial nation to conserve as well as to 
produce. Wastes should be eliminated. Goods should 
be produced in increasing quantities and at lower costs. 
Production should continue with the greatest possible 
saving of wastes, with the best utilization of natural 
resources, labor, and capital, and with the greatest 
conservation. Business men should realize that econo- 
mic conditions have a great effect upon business activi- 
ties, and the efficiency with which they are performed. 
It is the economist who in the future will prove the 
greatest friend of business men in solving the impor- 
tant question of efiliciency. Business which is con- 
ducted by one part of society at the expense of another 
cannot be Justified, and will not be tolerated under the 
new efficiency movement. 

Labor should be conserved, directed, and given just 
and fair remuneration. Efficiency demands this, and 
Efficiency ^s soon as business men realize that exploita- 
not expioi- tion does not pay, and that efficiency does, the 
tationpays. j-gia^ions between employers and employees 
will be less antagonistic, and both will find it to their 
advantage to work for their common interests. Our 
industrial progress will to a large extent depend upon our 



THE ECONOMIC NEED OF EFFICIENCY 9 

conforming to the fundamental principles of efficiency. 
It is only during recent years that this has been realized 
by business men. This reaHzation and efforts to ascer- 
tain and follow these fundamental principles is a dollars- 
and-cents proposition, and as such appeals particularly 
to business men. The chief aim of this book is to open 
the eyes of business men to the underlying principles of 
efficiency, to educate them to the importance of these 
principles, and to explain their methods and workings 
in such a way that all business men will profit. 

With the ignorance and the wastefulness with which 
our business was conducted throughout the nineteenth 
century, one marvels at our industrial growth j^^^^^^. 
and expansion. It is not long ago that each methods of 
workman ground his own tools, and ran ma- ^^^ '^^t 
chines at rates that seemed to him suitable, '^^^^''y- 
No worker knew if work could be done better or faster, 
because he was supposed to go ahead with his task, and 
not to stop and try experiments. Skilled mechanics 
learned their trades by observing others work, taking 
what movements they thought necessary, and doing 
whatever appeared to their hking. The object was to 
learn to do a certain task, and little heed was paid to 
the question whether or not it was the best method. 
Each man was supposed to be the judge of his own 
speed. The average man simply worked fast enough 
to hold his position, and, if possible, to soldier and not 
be discovered. No attention was paid to protecting 
workers from machines, as they were supposed to keep 
out of the way, and if one was injured, it was usually 
blamed to the carelessness of the worker, and not to 
the negligence of the employer. With these conditions 
prevailing in the average business plant, is it a wonder 
that the progressive business man marvels at our in- 
dustrial growth and expansion during the last century ? 



lo ECONOMICS OF EFFICIENCY 

Management was lax, as everything was based largely 
upon guesswork. There was Httle knowledge of the 
general principles underlying organization, and 
methods of the well-organized business was the exception, 
business Little heed was paid to system, and the average 
°^^nt^^' manager kept the details of the business in his 
head. He was supposed to look after details, 
as well as important matters, and to get his information 
by observation. He laughed at system, and thought 
it hindered rather than fostered success. The only 
guide as to whether or not the business was prospering 
was the bank account, the ability to meet obliga- 
tions. No knowledge existed as to costs, and no system 
of cost finding, or cost accounting was found. In re- 
gard to costs, everything was based on guess. Guess, 
haphazard, chance, and luck were the bases of conduct- 
ing the average business, until recent years. Such 
methods work, if coupled with judgment and a more 
or less large margin between selling and cost prices. 
With keen competition and small margins they fail. 
They must be eHminated, and their places taken by cost- 
finding systems, by organization, and by knowledge in 
dealing with men, materials, and machines. 

The expression "Knowledge is power" is one which 
has been handed down from antiquity. Knowledge is 
Accurate ^^ absolute prerequisite of efiiciency, but 
knowledge knowledge itself is of httle avail in obtaining 
and greater efficiency and business success. The 

mac nes. pj-Qp^j- -^J^^^Q of knowledge is what is needed in 
business. Efficiency is obtained by first acquiring knowl- 
edge, and then making proper use of that knowledge. 
Knowledge as regards machines and equipment has been 
appHed with varying success. The latter part of the 
nineteenth century showed great development in the 
acquiring and the applying of knowledge that obtained 



THE ECONOMIC NEED OF EFFICIENCY ii 

greater results from machines and equipment. The 
appUcation of exact knowledge was during the last 
century confined to mechanical equipment. Little 
was done to obtain a knowledge of the human factor, 
the greatest factor in production. The neglect of this 
factor was due more to ignorance on the part of the 
employer than to anything else. Accurate knowledge 
should be obtained of the human factor in the various 
phases of business activity, and appHed so as to obtain 
efficient results. The appKcation of accurate knowledge 
to the human factor, as well as to the other factors of 
production, reduces human effort to a minimum and 
increases production with lessened exertion. The great 
problem confronting every business man is to furnish 
daily the prescribed quantity and quality of work in 
all its varieties by the most efficient methods, and with 
a minimum amount of capital locked up in work. 

Men should be studied as well as machines. Methods 
of modern science should be appHed to the acquiring 
and the applying of accurate knowledge re- . 
garding the human factor in business. The knowledge 
value of scientific knowledge in industry has applied to 
long been recognized, but the idea of apply- factor"™^ 
ing it to ascertain what a man can do is new. 
The characteristics of the human element should be 
carefully studied and analyzed. Much has been done 
during the past decade, but the study is as yet in its 
infancy. With its present beginning, much is to be ex- 
pected from the next few years. Many results have 
been obtained, but these are slight compared with what 
will follow. The study will not only benefit large em- 
ployers, but all employers. The greatest benefit will 
come to the laboring class in general, as it will assure 
them proper working conditions, just wages, and higher 
standards of living. 



12 ECONOMICS OF EFFICIENCY 

Accurate knowledge should replace rule-of-thumb 
practices, and everything should be done intelligently 
and nothing left to chance or ignorance, 
knowledge Careful study and investigation of the human 
and the factor in all its phases should be made for the 
factor^ purpose of obtaining exact knowledge. Ex- 

periments for the purpose of discovering the 
best methods and ways for shaping action should be 
conducted with the greatest care. Accurate knowledge 
discloses wastes, but it requires further action to elimi- 
nate wastes. It gives conditions most conducive to 
health and work, but it remains for the employer to 
apply the knowledge, and to make the working con- 
ditions the best possible. Accurate knowledge dis- 
closes the best methods for the performance of a task, 
but training and cooperation are necessary to put these 
into practice. Accurate knowledge tells the best ma- 
terials, machinery, tools, and equipment for work. 
Accurate knowledge discovers how best to conserve 
health and strength, and employers should be guided 
by such in looking after the health of their employees. 
Health is a prerequisite of efhciency, and everything 
which impairs health impairs efficiency. Employers 
should care for employees outside of the plant, as well 
Requisites ^^ while working. The obtaining of accurate 
for accurate knowledge demands a careful analysis of the 
knowledge. qQqqi of working conditions, habits, and work 
in its various phases upon the worker. It demands a 
careful study of materials, machines, and equipment, 
so as to ascertain that which is best suited for perform- 
ing the work to be done. 

Success depends upon the care taken in obtaining 
accurate knowledge, and upon the use which is made 
of it. A plant should be made to work under condi- 
tions, as near as possible, to what accurate knowledge 



THE ECONOMIC NEED OF EFFICIENCY 13 

demands they should be. Actual conditions should be 
studied and changed to meet the demands of accurate 
knowledge. The conditions existing in thou- success and 
sands of plants are the result of ignorance, accurate 
and much of the waste is due to the same cause, ^^owie^g^- 
The obtaining and the applying of knowledge obviates 
guessv^^ork, and eliminates much of the wastes which 
at present exist in so many of our industrial plants. 

Each manufactured commodity found in a market is 
the work of many hands. The development of ma- 
chinery made possible production on a large 
scale and, in its turn, greater division of labor ment of" 
to meet increasing industrial needs. Division machinery 
of labor means the division of the processes of o^^abor^'^" 
making a commodity into a number of sepa- 
rate processes, and intrusting the worker with the per- 
formance of one or two of these. A visit to any large 
factory shows a score or more separate processes in the 
making of a single commodity, which formerly was 
made entirely by a single individual. For instance, 
in the making of a ready-made coat there are thirty- 
nine distinct processes, and in the making of a pair of 
men's brogan shoes, no less than eighty-four. Pro- 
duction on a large scale and the extensive use of ma- 
chinery make possible an effective utilization of every 
kind of individual capacity. 

The proper placing of labor and its proper guidance 
and training avoid waste of strength, and unite hand- 
work and brainwork. Division of labor causes gj-ains and 
unskilled work to be performed by unskilled abmtytodo, 
workers, and skilled by experts. Minute divi- requisite in 
sion of labor or high specialization is a promi- "^"^®^^- 
nent factor in our industrial system. The all-round 
worker has been displaced by the more or less special- 
ized one. Chance, luck, and guesswork of the old 



14 ECONOMICS OF EFFICIENCY 

regime should be replaced by skill, the application of 
accurate knowledge, and efficiency. Specialization in 
industry and subdivision of labor assume a new im- 
portance. Brawn and muscle should give way to skill 
and intelligence. Brains and ability to do, and not 
stores of inapplicable knowledge, are the great needs 
of our industrial system. Inventions and improve- 
ments in endless succession are increasing the effective- 
ness of business activity. They are Ukewise increasing 
daily the demand for thinking men, — men with the 
skill and the abiHty to perform the work necessary for 
rapid industrial development. The necessity for econ- 
omy in lowering costs in production has developed 
intricate, automatic, and highly speciahzed machinery 
to a remarkable degree, and is responsible for the present 
specialization and subdivision of labor. 

The underl3dng principle of specialization is division 
of labor, but it is broader than the ordinary meaning 
speciaiiza- ^^ ^^^ term "division of labor," because it is 
tioninits appHed to machines and manufacturing as 
broader well. A quarter of a century ago it was com- 
meamng. ^^^ ^^ ^^^ ^ plant making many forms of 
commodities. As markets were extended, and com- 
petition became keener, it was found that it was more 
profitable to concentrate production on fewer lines of 
work. The extended markets made it possible to dis- 
pose of large quantities of product. The lines were 
narrowed and specialization assumed another form. 
Formerly, the factory made within its walls all the 
parts of the article produced. Later, manufacturers 
found that they could buy many parts more cheaply 
than they could make them. Enterprising manufac- 
turers soon found that if they would devote their time 
to manufacturing bolts, screws, tools, etc., and pro- 
duce them in large quantities, they could produce and 



THE ECONOMIC NEED OF EFFICIENCY 15 

sell at a profit to manufacturers using them in small 
quantities, at a price less than the consuming manu- 
facturer could produce. Formerly, factories were in a 
large measure self-sufficient, with few excep- specializa- 
tions producing every part of an article, as tion in the 
well as the tools used in its production, while ^^*^*°^y- 
to-day, as a result of growing specialization, it is hard 
to find a factory that is self-sufficient. Every factory 
depends upon many others, not only for raw materials, 
but also for its tools and many parts of the article or 
articles produced. 

As competition became keener, and the business unit 
increased in size, the tendency towards greater special- 
ization in the manufacturing plant constantly gpeciaiiza- 
grew. Plants have not only become more tion in ma- 
speciaHzed, but also machines and tools. The chines and 
tendency towards greater specialization is as 
great with machines and tools as it is with plants and 
labor. In a big manufacturing plant, many of the 
tools and machines are especially designed for their 
particular functions and no others. The increased 
specialization of tools, machines, and plants has nar- 
rowed the work as compared with the old system. It 
follows that it tends to narrow the field of action of the 
men employed in a plant. A few years ago, a shoe- 
maker measured his customer's foot and made the shoe, 
but to-day, with specialized machinery, the making of 
a pair of brogan shoes is divided into eighty-four differ- 
ent processes. Shoemaking is confined chiefly to the 
mending of shoes, and its place as a trade has disap- 
peared, and instead there has arisen a highly speciaHzed 
industry. Markets Hmit specialization. Specialization 
depends upon a large market, as a large product must 
be sold in order to make specialization possible. 

Specialization of plant, machinery, and labor is a 



i6 ECONOMICS OF EFFICIENCY 

feature of our present-day industrial system. Com- 
modities are produced more cheaply than under the older 
Effects of methods, and this fact has attracted the at- 
speciaiiza- tention of the manufacturer. The influence 
tion on of the new methods has been the narrowing 
of the activity of the worker, and the requir- 
ing of more special skill of hand and head. It confines 
human activity to a narrower field, and has caused the 
disappearance of the old-time, all-round mechanic. The 
concentration of efforts either mental or physical upon 
a narrower field of activity increases skill and output. 
The extensive growth of our business unit and the high 
degree of speciaHzation in our plants made it difficult 
for one man to know and to retain a grasp of any one 
field. Specialization increases skill, dexterity, and speed 
of workers. The worker of to-day is more highly skilled, 
and far more productive in the few operations that he 
performs, than was his many-sided predecessor, the all- 
round mechanic. 

The simphfication of processes, the specialization of 
machinery, and the consequent division of labor are 
The dangers consequences of the modern factory system. 
of special- The necessity of lowering costs of production 
ization. developed automatic and specialized ma- 

chinery to a remarkable degree, and is responsible for 
the present degree of division of labor. The direct 
result is the specialist laborer, who performs only one 
of the many operations in the production of a single 
article. SpeciaHzation is a permanent factor in in- 
dustry, and is an economic necessity in our struggle 
for markets. It is carried in many cases to such a 
degree, that if precautions are not taken, it becomes a 
menace to the worker. It is in cases where operations 
are repeated rapidly and require httle skill or mental 
effort, but great concentration of attention, that the 



THE ECONOMIC NEED OF EFFICIENCY 17 

menace appears. In such cases, it requires the careful 
attention of employers, and a careful study of the effects 
of the monotonous repetition, and of the concentration 
upon workers, so as not to allow work to proceed to the 
point of overfatigue. Frequent rests are necessary, as 
overfatigue impairs health and efficiency, and should 
be avoided. 

The highly specialized machines, features of our 
present complicated industrial system, demand intelli- 
gent and highly skilled men to attend them. 
The present need is for workers, skilled and demands 
intelligent. There never was a time in our mteiiigent 
industrial history when this necessity was a°d skuied 

Ti ••! 1 iri workers. 

reauzed as it is to-day, and never before have 
the pubhc and employers taken such an interest to find 
methods of obtaining and of assuring the supply not 
only of skilled, but of intelligent workers. The intelh- 
gent development of workers has a decided advantage 
in raising the laborer above the narrowing tendencies 
of high specialization. Nothing is to be feared from 
the influence of workers skilled with their hands, and 
developed in their minds for independent thought and 
action, but much is to be feared from a body of workers 
who allow others to think for them. The present ac- 
tivity in all directions for educating workers has a de- 
cided benefit in developing independent workers who 
think as well as perform their manual work. 

During the last century, industrial progress outran 
all other forms of development, and it is destined to be 
greater this century, but the chief attention Requisites 
will be directed to studying the human ele- for future 
ment, and making possible its greater effi- industrial 
ciency. Future industrial progress depends p"^®^®^^- 
upon the hands and the brains which tend and run 
the complicated machines. Skill, dexterity, and speed 



i8 ECONOMICS OF EFFICIENCY 

combined with intelligent development are what is 
demanded to-day, and it is well that manufacturers 
have so early reaKzed this necessity, and have taken 
measures to assure the higher skill and intelHgence so 
necessary for further industrial progress and develop- 
ment. Modern methods of production favor a con- 
tinual advance of specialization. Every man should 
do what he can do best, and only that. It is a fact that 
the fewer the movements and the simpler, the better 
and the quicker may work be done. Business success 
depends upon a most complete subdivision of work, 
and the greatest number of repetitions of thought and 
action to the extent of mental and bodily comfort. 
SpeciaHzation, when it works correctly, takes into con- 
sideration not only the worker's efhciency working along 
lines of habit, but it gives every aid to making methods 
and environment fit the requirements of mind and 
body. Progress demands specialization, but it also 
demands that specialization should not in any way 
impair health or lower the intelligence of the workers. 
SpeciaHzation should be associated with a careful study 
of results, so that health is not impaired, and at the 
same time the intelligence of workers is raised. 

Specialization usually leads to standardization. 
Standardization is setting up and rigidly following 
standard- standards or types. It has made considerable 
ization : its progress in manufacturing, but little advance- 
meaning, ment in other forms of business activity. The 
tendency of modern business is towards standardization 
in product, tools, appKances, methods, environment, 
equipment, habits, devices, and conditions. It is a 
necessity in manufacturing for a large market, and is 
the starting point in every attempt to produce great 
quantities of goods cheaply and uniformly. Its ad- 
vantages in increasing efficiency and lowering costs of 



THE ECONOMIC NEED OF EFFICIENCY 19 

production are everywhere recognized. The produc- 
tion of an original type or standard involves concen- 
tration of thought and skill. It demands expensive 
study and experimentation by the best talent. When 
a type is once determined, its reduplication is purely 
a mechanical process. It permits skill, dexterity, and 
speed on the part of employees, and greatly increases 
output at a lower cost. 

In the making of commodities, standardization may 
be carried to any degree of completeness. It may 
comprise entire parts of an article, as, for ex- poggibie 
ample, locomotives, typewriters, or watches, extent of 
Every part of any one of these commodities standardiza- 
may be made so exactly like the correspond- 
ing part of every other commodity of the same kind, that 
perfect exchangeability is secured. The standard for 
regular product has been set and reached by many 
manufacturers with many products. The parts mak- 
ing up the finished product are made separately by 
workmen often in different establishments. A worker 
does not have an opportunity to fit the part he is mak- 
ing to other parts with which it is to work. The part 
is made according to a standard type, and is made in 
great quantities. The part when assembled with other 
parts which go to make the complete article, fits in its 
place and performs its function usually without the 
touch of a file. Sometimes an absolute standard of a 
product may not be possible. In such cases, standard- 
ization should be carried as far as possible. Standard- 
ization is the basis of large-scale production, and the 
tendency is towards adopting types for the parts of 
regular product, and manufacturing according to 
standards. 

The determination of standard methods and the 
training of workers in their use ehminate much waste 



20 ECONOMICS OF EFFICIENCY 

through ehminatlng unnecessary movements, and make 
for greater efficiency. The obtaining of standard time 
Kinds of ^^r a task for comparison with actual per- 
standard- formance is necessary in increasing effici- 
ization. ency. The ascertaining of a high quality, 
making it standard, and always adhering to it, is a 
business builder and a valuable asset. Standard en- 
vironment is important in preventing distraction from 
work. Wherever possible, standards should be deter- 
mined and adhered to. Standardization is one of the 
strongest factors in our industrial system working 
for greater efficiency, and is a basic structure for suc- 
cessful competition in foreign markets, and for indus- 
trial progress. 

Profit making is the aim and the object of business 
activity. Profits depend upon the selling of product 
Competition ^^ ^ greater price than what it costs. From 
an important their nature, profits may be classed as competi- 
factor in ^ivc and monopolistic. Profits, unless they 
are monopolistic, depend upon successful com- 
petition. Competition is a phenomenon which the 
average business man must reckon with, because his 
success depends upon his ability to compete success- 
fully in the market. President Hadley defines com- 
petition as the effort of rival sellers to dispose of their 
goods and services, or of rival buyers to secure the 
goods and services which they require ; an effort limited 
by the desire of the seller to secure as high a price as 
possible, and by the desire of the buyer to pay as low 
a price as possible. Competition is not the product of 
our present industrial system, as it has existed since 
the beginning of barter. Under the factory system, 
competition became a more important factor in busi- 
ness than it was under the domestic system, when 
goods were usually sold first and made afterwards. 



THE ECONOMIC NEED OF EFFICIENCY 21 

The practice of our industrial system is the production 
of goods for the market, and frequently new plants are 
built or additions made to old to fill anticipated orders. 
The production of goods for future markets intensified 
competition which made itself felt in every part of our 
industrial system. 

The growth of capital, the various inventions, and the 
improvements in transportation facihties and in trans- 
mission of intelligence increased the size of the 
business unit, and in the efforts to dispose of petition led 
product, extended markets to international or to a struggle 
world's boundaries. To obtain the advan- *°g°g^^^ 
tages of producing on a large scale, a much 
larger product must be disposed of, and this greatly 
intensified competition. The best possible method of 
selHng a large product in a competitive market is to 
undersell one's competitor. Competition resulted in a 
struggle to lower costs so as to dispose of goods. This 
made it necessary for the manufacturer to do every- 
thing possible to decrease the per unit cost of his good. 
At first, as previously stated, he directed his whole 
attention to improved machinery, equipment, and pro- 
duction on a larger scale, with its greater specialization 
and standardization. Competition became keener and 
keener and new devices and methods had to be devised 
to lower costs, or else the market would be lost. It 
was as a last resort that attention was attracted to the 
human element, and its study at once revealed wastes 
which it was never thought existed, and the fact was 
discovered that costs could be lowered through the 
elimination of these wastes. The basis of successful 
competition Hes in efficiency, and the more efficient a 
plant, the better able will the manufacturer be to com- 
pete successfully in the market. 

Production in its manifold phases is the center of the 



22 ECONOMICS OF EFFICIENCY 

present business activity. Production applies to the 
creating of utilities or capacities in goods for the pur- 
pose of satisfying human wants. The utilities 
utiutles.^ ° ^^^^ which production is concerned may be 
divided into four classes — form, place, posses- 
sion, and time. A new form utility is created by a 
change in form, shape, weight, color, taste, smell, or 
any other quality of a thing which increases its capacity 
to satisfy human wants. Utihty may be added by a 
change in place. Coal in New York is worth more 
than it is at the mine. Utilities may be added to goods 
by a transfer of ownership from one individual to another, 
or by a change in time. Certain kinds of wines, musical 
instruments, as well as many other products improve in 
quality by the mere lapse of time. Things that grow, 
like trees, plants, and animal life, increase in quantity 
in time. The effort of keeping commodities until they 
are of more effective service involves the creating of 
time utilities. 

In production there is cooperation of many economic 
elements. In a producing plant one finds land, build- 
ings, machinery, tools, raw materials, money, 
pn)duction. goo^s in process of production, finished goods 
awaiting sale, labor, and management. With 
every business enterprise, certain economic elements are 
needed for its operation. Generally speaking, each 
economic element which enters into an industry is a 
factor, but it is customary to group the numerous factors 
into four classes, land, labor, capital, and management — 
and to subdivide each into numerous divisions. 

Land includes not only the surface of the earth, 
materials above and beneath it, bodies of water and 
what they contain, but the physical and the 
natural forces which assist man in his eco- 
nomic activities, as climate, winds, tides, and rainfall. 



THE ECONOMIC NEED OF EFFICIENCY 23 

Of equal importance with land in production is man. 
By his efforts, the raw materials are taken from the 
mother earth, and converted into utilities to 
satisfy human wants. The efforts of man 
directed toward the creation of utilities are called 
labor. Labor includes not only the efforts of persons 
in the creation of utilities of a material form, but serv- 
ices that yield utihties of an immaterial nature, such 
as those of the doctor, lawyer, or domestic servant. 
Land and man are the two primary factors of business, 
but they can accomplish little without the . 
assistance of a third factor, capital. Capital 
consists of goods produced in the past and used for 
further production. The capital of a country consists 
of buildings used for industrial purposes, tools, ma- 
chinery, transportation systems, transmission of in- 
telligence systems, money, raw materials, finished goods 
awaiting sale, etc. Capital is not, like land and labor, 
an independent factor in production, but is obtained 
by the application of human efforts to land. The use 
of capital in its various concrete forms greatly assists 
production, economizes labor, and permits the extensive 
utilization of materials and natural forces. The task 
of cooperating land, labor, and capital in a business 
enterprise is an important one. The person who per- 
forms this task has come to occupy such an im- 
portant place in modern business that it is ment^^^" 
necessary to regard this function, the man- 
agerial, as a separate factor, distinct from other classes 
of labor. The managerial function is the most impor- 
tant factor in our complex industrial system. It is true 
that there must be land, labor, and capital, but they 
are of little consequence without organization, super- 
vision, and management. The managerial function of 
coordinating land, labor, and capital, of supervising all 



24 ECONOMICS OF EFFICIENCY 

activities, and of assuming all the responsibilities and 
risks of business is the bone and sinew of every business 
enterprise, and its successful performance means success. 

The United States has within the brief span of three 
score years and ten, one's allotted life, come from com- 
Business parative obscurity to contending for first place 
men should among the world's industrial nations. If she 
p^ heed to continues her rapid industrial growth for the 

ciency. ^^^^ ^^^ decades, she will easily lead all indus- 
trial countries. Our business men should awaken to 
the great need of a careful study of the factors of pro- 
duction and of business activities, in order to eliminate 
wastes, and to ascertain how to get the greatest results 
from the use of the different factors of production. They 
should heed the cry of efficiency, find out its methods, 
and do their utmost to eliminate waste, the greatest 
evil in production as well as the greatest hindrance to 
industrial expansion and growth. 

QUESTIONS 

1. What is the factory system? How did it affect labor? 

2. Why was the human factor so long neglected? What 
attracted business men to its importance ? 

3. What is efficiency ? Why is it the goal in industry ? 

4. What is conservation of workers ? Why was it so long 
neglected ? 

5. Give an account of methods of management during the 
nineteenth century. 

6. How does the expression "Knowledge is power" apply to 
business ? 

7. How should accurate knowledge be obtained and what use 
should be made of it ? 

8. What is the meaning of specialization as applied to (a) labor, 
(b) machines, (c) plants? 

9. Show that specialization is a permanent factor in our indus- 
trial system and an economic necessity in our struggle for markets. 

10. What is standardization? Mention the various kinds of 
standardization. 



THE ECONOMIC NEED OF EFFICIENCY 25 

11. What are the advantages arising from standardization? 

12. What is competition ? Show that competition is an impor- 
tant factor in business. 

13. Name and define the different kinds of utilities. 

14. Name and define the different factors in production. 

15. Why is the managerial function the most important in our 
industrial system ? 

REFERENCES 

Books 

N. A. Brisco, "Economics of Business," Chs. I, II; F. T. Carl- 
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" Business Success" ; J. C. Duncan, "The Principles of Industrial 
Manag emeni ," Ch. VI; R. T. Ely, "Evolution of Industrial 
Society"; H. Emerson, "Efficiency," Chs. II, V, VI, VIII ; H. 
Emerson, "The Twelve Principles of Efficiency," Chs. XI, XII; 
L. Galloway, "Organization and Management," Part I, Chs. I, 
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C. B. Going, "Principles of Industrial Engineering," Chs. I, II; 
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26 ECONOMICS OF EFFICIENCY 

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ical Engineers, Transactions, Vol. 34, pp. 1131-1229; "Present 
State of the Art of Management," American Machinist, Vol. 37, 
PP- 757-762 ; "The Present State of the Art of Scientific Manage- 
ment," Industrial Engineering, Vol. 12, pp. 235-239. 



CHAPTER II 

Efficiency 

A FEW years ago, many believed that markets could 
be obtained and held by means of large-scale production. 
The economies and the advantages arising Evolution of 
therefrom, it was thought, would so greatly re- the effi- 
duce costs of production that American indus- ciency 
tries could continue to compete successfully °^ ^^°^ ' 
with the world. Large-scale production resulted in 
keener competition, and this had to be met by lower 
costs. Manufacturers, driven by the necessity of a 
further lowering of costs, turned their attention to their 
own plants. Improvements in machinery had followed 
in rapid succession, and little more could be expected 
in that direction. Attention was by accident directed 
to labor, and its study has proven that lower costs must 
be sought through this neglected factor in production. 
The study of the human factor in production revealed 
the existence of much waste in every plant. Manu- 
facturers marveled at the extent of the waste found 
in their plants, and soon realized that its elimination 
meant the lowering of costs, and the possibility of ex- 
tending markets. The movement for the elimination of 
wastes is given the name of efficiency. The efficiency 
movement spread with great rapidity until it became 
first national, and then international. Efficiency is a 
public need, and is not only necessary to meet compe- 
tition, but to conserve a nation's resources and its most 
valuable asset, its working classes. 

27 



28 ECONOMICS OF EFFICIENCY 

It is difficult to give a definition of efficiency that 
will be accepted by all who are endeavoring to promote 

its development in business activities. The 
its meanhig- ^sual meaning of efficiency is the ratio between 

the actual performance of an operation and 
the maximum performance which has been determined 
to be possible. The two important problems are what 

ought to be in case of an action and what ac- 
ascrrtain. tually IS. The ratio of what is to what ought 

to be gives the efficiency of an actual per- 
formance. Efficiency, therefore, equals 

actual performance 
standard performance 

It is purely relative and should always be expressed 
as a fraction, in vulgar or decimal form. The value 
of a fraction is changed by changing either numerator 
or denominator, and both should therefore be determined 
if the result is to be a determined quantity. 

The numerator may be easily ascertained by actually 
measuring a performance under observation. The diffi- 
How to find culty comes in finding out the correct value of 
thedenomi- the denominator. The denominator should be 
nator. determined by an expert who investigates ma- 

chines, tools, materials, methods, and arrangements, 
and ascertains those best adapted for the performance 
of a task. He carefully studies the performance of the 
task and ascertains the necessary movements and the 
time required for their performance. As a result of 
scientific investigation, and the use of a stop watch, the 
expert decides what time the performance of a task 
ought to take, or the denominator. The denominator 
becomes the standard to be striven for in future per- 
formances. Workers should be trained in the methods 
which are ascertained to be the best for performance 



EFFICIENCY 29 

in standard time. The work as actually performed 
should be carefully studied so as to eliminate misdirected 
motions, and efficiency increases as the methods of actual 
performance and the actual time spent approach the 
standard. As applied to business, efficiency is the rela- 
tion between an action which has produced 
a known result and the action which has been -^ business, 
previously determined for producing a similar 
result. The efficiency of an action varies as its perform- 
ance varies with the standard. It increases as the per- 
formance approaches the standard, and the aim should be 
to have as Httle difference as possible between the two. 

The real value of computed efficiencies Hes in the ex- 
tent to which they indicate the means of eliminating 
wastes, and the direction in which energy and computed 
efforts may be best directed. Computed effi- efficiencies; 
ciencies are of little value unless they are used *^®"' ^^^"^• 
for the purpose of studying actual work in order to dis- 
cover wastes, and efforts are directed to devise means of 
their elimination. The purpose of efficiency 
is to eliminate waste, and this is the object of Q^ciem^y 
the scientific study of plant, machines, and 
men. The elimination of waste should be the goal in 
a business plant. It is a condition which allows pro- 
duction at lowest cost, and successful competition in 
markets, national and international. In every busi- 
ness plant, wastes are prevalent, and business men are 
usually blind to their extent. Ignorance has been and 
is still the chief factor causing high costs and failures. 
Efficiency demands that business men inves- scientific 
tigate and study the various factors in their study to re- 
enterprises. An initial study usually proves veal wastes, 
so successful that it leads to a more extensive one. The 
elimination of wastes may be slow, but every elimination 
lessens costs and increases efficiency. Many believe effi- 



30 ECONOMICS OF EFFICIENCY 

ciency is only attained when ideal conditions are reached. 
These are never reached, because the discovery of new 
methods, machines, etc., continually raises standards. 
The elimination of wastes in any form increases efH- 
ciency and lowers costs. Business men are realizing 
the importance of the efl&ciency movement and are 
taking an increasing interest in it. 

Efficiency has received the greatest attention and 
the greatest advancement has been made in manu- 
. facturing plants. Wastes are found in 

needed in every kind of business enterprise, and their 
all kinds of elimination means lower costs and increased 
enSr^rises efficiency. Efficiency, therefore, is of the 
greatest concern to every business man, it 
matters not the character of his business activities. 
It is lacking to a remarkable degree in the conducting 
and in the management of railroads and transportation 
companies. If sincere efforts were made to secure 
efficiency, the result would be a great reduction in the 
cost of operation of public utiHty corporations, and it 
would be possible to give better service at reduced rates, 
and the companies would at the same time enjoy the 
same if not greater net earnings. PubHc officials should 
also pay particular attention to efficiency. PubHc ad- 
Efficiencv ministration has been in the past, and is at 
in public present, conducted with appalHng wastes, and 
adrainistra- the result is that people receive poor returns 
*^°^' for the public money expended. The public 

should demand a more efficient use of its funds, and if 
this were done, it would put an end to graft and waste, 
and secure more than double results for the same amount 
of pubhc money expended. The entrance of efficiency 
into our public administration would be a most impor- 
tant factor in placing it on a businesslike basis. One 
of the greatest wastes in this country has been in the 



EFFICIENCY 31 

expenditure of public moneys. The sooner the public 
realizes the need of efi&ciency in public administration, 
the better it will be for the country at large. 

There is no field where efiiciency, if appHed, would 
bear greater fruit than in our educational system. Our 
schools are seats of appalling wastes. The -pastes in 
most important period in the hves of the young our educa- 
boys, who are destined in the future to fur- ^onai 
nish labor and executive abihty to manage ^^^ ^^^' 
the great business enterprises, is largely taken up with 
training which is of Httle use to them in preparation for 
their Hfe's work. How much of the time of children 
is practically wasted by taking their time for studies 
which are of Httle or no use to them in their future work ! 
The aim in our industrial system should be a training 
which gives the best preparation for our boys in order 
that they may become efiicient and intelKgent pro- 
ducers. This demands a careful preparation of school 
curricula with this aim in view, and the adoption of the 
best methods of instruction, so as to reach the result 
with the least expenditure of time, energy, and money on 
the part of the students, parents, and pubHc in general. 

The years from fourteen to sixteen are years of great 
waste in the Hves of many children. They finish gram- 
mar school, but are too young to enter a trade pj-o^gjong 
or apprentice school. Their parents cannot for indus- 
afford to send them to high school, so they ^^^ t^^i^- 
are put to work at whatever they can get. "^^* 
They join the ranks of cheap, unskilled labor, and by 
the time they have been working a couple of years, 
many lose the desire to become apprentices, and con- 
tinue unskilled or, at most, semi-skiUed workers. How 
to eHminate this waste is one of the most perplexing 
educational questions of to-day. The answer seems 
to be that the training must come from either or both 



32 ECONOMICS OF EFFICIENCY 

of two sources, the establishment of industrial schools, 
or the extension of the training of grammar schools. 
Either will give good results, and time should not be 
lost in making provision for this much-needed training. 

Efficiency demands workers developed mentally, 
physically, and morally. The schools throughout the 

land should follow large cities in looking after 
and niorai ^he physical development of children. EflS.- 
training; cicncy demands a strong, healthy body for 
tanc™^°^" work, and this takes us back to the physical 

development of children. This phase of train- 
ing has in the past been sorely neglected, and is very 
important with every boy and girl. Children should 
be taught proper habits of living, proper ways of look- 
ing after their persons, and the necessity of proper diet, 
regular periods of rest, and proper environments for 
living. The evils of the use of alcohol, tobacco, and 
of intemperance in every form should be impressed 
upon them. The acquiring of good habits of living is 
very essential for efficiency, and they should be ac- 
quired in the home and in the school. Efficiency is as 
badly needed in our schools as it is in our industrial plants. 
The study of how to obtain more productive per- 
formance of work is not new. It is one of the oldest 

things in the world. From the most primitive 
^tu^A^t , times, men under a natural inherited stimulus 

metnodsior ' . i • , 

obtaining have always sought to obtam a desired result 
increased -^{th the least possible effort. Since man be- 

resultsfrom , ^ c • ^.i. j i 

labors. §^^ ^^ work lor man, various methods have 

been devised for converting a given outlay of 
time and labor into the largest attainable results. The 
methods are as numerous as they are varied, and in- 
volve every device of human ingenuity. Kindliness 
and cruelty, high and low wages, the selection of the 
most intelligent grade of workers, carefully supervised 



EFFICIENCY 33 

training, steady work, and reward schemes have all 
been tried with varying results. The question of ob- 
taining the best possible results with the least possible 
effort dates back to antiquity. 

The idea of applying the term efficiency to the human 
element in business is new. It is only recently that 
people have given thought to increasing re- Applying of 
suits by paying attention to the subject of efficiency to 
physical and mental work. The efficiency '"°^^' 
movement is the extension of efficiency to human ef- 
forts in business, and the appHcation of scientific study 
and investigation to methods of work, requirements for 
work, and conditions of human beings for work. It 
represents the introduction of science into every phase 
of business activity, and will result in the reduction of 
business activities to a scientific basis. The wastes 
existing in every form of business which the initial 
study of efficiency has brought forth emphasize its 
importance in the struggle in every form of competitive 
business to lower costs. The efficiency movement has 
suddenly come into prominence and is attracting the 
attention not only of business men, but of thinkers in 
every industrial country of the world. 

Many beheve that efficiency means simply doing things 
well. It means far more, because things may be done 
well, but at the same time they may be done 
as well in far less time, with less energy ex- done^weut 
pended, and with less outlay. Usually, men the old vs. 
say things are done well, and it is only a guess, *^® ^f'^ 

i_ 11 r 1 '11 meaning. 

because tney have no way of knowmg that such 
is the case. Efficiency is a positive relation between a 
standard which is possible of accomplishment and the 
actual attainment. The highest efficiency is therefore 
when the actual attainment reaches the standard. This 
should be the aim in every enterprise. The obtaining 



34 ECONOMICS OF EFFICIENCY 

of standards is of the greatest importance in efficiency. 
They should be based on actual knowledge and not on 
guess. The obtaining of actual knowledge demands 
the services of experts, and careful study and experi- 
mentation. The standards should serve as a basis for 
scientific study of methods, materials, tools, machines, 
and equipment in order to devise means of eliminating 
wastes, and bringing actual work as near as possible to 
standard. 

It is never advisable to be too radical in changes, as 
the greatest success comes from the gradual introduc- 
Changes tion of innovations. Many wastes may be 
should come eliminated by slight changes. A careful 
slowly. study of machines, tools, materials, equip- 

ment, and methods will reveal wastes which may be 
wholly or partially eliminated by the management 
without any, or with only slight interference with the 
working force. The greatest difficulty comes with the 
elimination of human wastes, or the directing of human 
efforts in such a way, that the greatest results may be 
obtained with the least expenditure of effort. A care- 
ful study of methods, machines, and equipment will 
give standards, or the best methods of doing tasks, 
and the time necessary. The introduction of best 
methods of doing work in a working force will invariably 
meet with opposition, and requires tact and judgment 
How to on the part of the management. If changes 
introduce are made slowly, the workers taken into con- 
changes, fidence, and Hberally rewarded for their ef- 
forts, and for following proper methods, opposition 
will be overcome without antagonism, and at the same 
time the cooperation of the working force will not only 
be maintained, but strengthened. The introduction of 
efficiency to any extent in an enterprise is no easy mat- 
ter. Tact, judgment, taking men into confidence, and 



EFFICIENCY 35 

fairness and justice in dealing with the laboring force 
are essentials for success. 

Efficiency is primarily concerned with the elimina- 
tion of wastes in every form of business activity. The 
scientific study of the factors in production 
is for the purpose of ascertaining proper ^aste.° 
methods of doing work for a guide in eliminat- 
ing wastes. Waste has been defined as the difference 
between what is and what should be. Time, energy, 
and material are wasted in an infinite number of ways. 
Much waste frequently occurs in buying and in using 
materials. In buying, waste is the difference between 
what it should cost to secure the material 
which is determined by scientific tests to be i,uy^g'° 
the best adapted to producing best results, and 
what is actually paid. Take, for example, the buying 
of coal. Careful tests should be made to determine 
the grade of coal which gives the greatest number of 
heat units per ton, to buy this grade, and to test it 
upon dehvery in order to see that it is obtained. 

Much waste exists in the use of materials. By care- 
ful testing and experimentation, a standard may be 
obtained as to what use and method of use waste in 
should be made of materials, in order to pro- using 
duce a given product under the most favorable ™^te"^s. 
conditions. A comparison of this standard with what 
is actually used gives the waste. Under old methods, 
it was absolutely impossible to discover the extent of 
waste in the using of materials, and even the detection 
of its presence was usually a matter of accident. Effi- 
ciency demands the ascertaining of standards importance 
in the using of materials, and these should of stand- 
give the best quahty of material needed for ^*^^- 
production, and the amount which should be used under 
best methods. Standards decide not only the exist- 



36 ECONOMICS OF EFFICIENCY 

ence of wastes, but, by comparison with the actual 
amount used, give the extent. They also give a basis 
for rigid investigation, which, if properly and scien- 
tifically conducted, results in the elimination of much 
waste and the saving of many dollars. 

Time is one of the important items in business, and 
more wastes occur from lost time than from any other 
cause. Loss of time increases costs, it matters 
timr^ ° ^^^ ^^^ ^^^^ of business enterprise where it 
takes place. Wasted time is the difference 
between the time taken to perform a task under the 
most favorable conditions and the time actually spent. 
Time in a factory is lost in many ways, some 
?°^g*™® of the chief of which are : waiting for supplies 
or materials, waiting for other parts of the 
plant, breakdowns, not starting machines on time, 
stopping before the end of the working day, not running 
machines to capacity, running machines in bad repair, 
using tools in bad repair, not using best machines and 
tools for work, not using best methods of production, 
and soldiering on the part of workers. One or more 
of these forms are found in every kind of business. The 
work of efficiency is the reduction of these to a minimum. 
Great wastes are found in every branch of industry 
from misdirected energy. A prominent investigator of 
national reputation declares that misdirected 
energy^ energy is the greatest of wastes. The prob- 
lem of lowering costs through the ehmination 
of wasted energy is of recent date. The best method for 
„ performing a piece of work with the least ex- 

eiiminate penditure of effort should be discovered by 
wasted scientific study, and this should be made 

energy. standard. The men should be trained in this 

standard and precautions taken to make certain of its 
adoption and use. This is a decided contrast to the 



EFFICIENCY 37 

old method of allowing every employee to use his own 
method of doing a piece of work, and giving no thought 
as to whether unnecessary movements were taken. 
There is a right way and a wrong way to do a piece of 
work, it matters not what it is. The right way should 
be ascertained and made standard. The presence of 
the wrong way means waste and higher costs. This is 
true with every kind of labor and with the performance 
of every kind of task. Efficiency is concerned with 
the discovery of the right way and having work per- 
formed according to this standard. The detection of 
wasted energy and its elimination is a problem of 
efficiency, and is a subject that deserves the closest 
attention of every business man. The aim of a busi- 
ness enterprise should be to produce results with the 
greatest economy, with the preservation of human 
health, and with the least possible waste of energy or 
of time to either man or machine. 

Strenuousness and efficiency are not synonyms, but 
are antagonistic in meaning. The former demands the 
putting forth of extra effort, while the latter strenuous- 
stands for the conservation of human energy, ness vs. 
Strenuousness overtaxes the strength, but ^^^^^^^^y- 
efficiency conserves it. The former brings greater re- 
sults with greater efforts, while the latter brings greater 
results with lessened efforts, through the elimination of 
unnecessary movements and the proper directing of 
energy. The efficiency pace is one which a ^q^^^^ gf. 
worker can maintain from day to day with- fident, but 
out extra physical, mental, or nervous strain. ^°^ stren- 
It is the pace of continuous work, and the one 
which does not overtax strength or impair health. The 
strenuous pace is the spurt of a short time, which can- 
not long be maintained without causing an extra strain 
upon the human system, undue fatigue, and;, if continued, 



38 ECONOMICS OF EFFICIENCY 

impaired health. To walk four miles an hour is efficient, 
because this can be kept up without undue exertion, 
but to hasten along at six miles an hour is strenuous, 
because in an hour or two at this pace, a person will be 
exhausted, and incapacitated for further walking. The 
efforts of man should be made efficient, but not stren- 
uous. Efficiency means continuous work, while stren- 
uousness stands for temporary spurts. Efficiency does 
not injure the worker, while strenuousness, if continued, 
is exhausting and very injurious to health. Strenuous- 
ness is something to be avoided if the goal is efficiency. 

Men, women, and children of the industrial classes 
are the greatest gainers from efficiency. A basic struc- 
Efficiency ^^^^ ^^ efficiency is health, and the demands 
protects upon employers to guarantee the maintaining 
health. q£ g^ healthy working force, through giving 

best possible working conditions and environment, 
through paying special attention to the maintenance 
of health, and through training in proper habits of living, 
benefit all members of the working class. Many workers 
have a fallacious idea that efficiency stands for strenu- 
ousness, something which demands efforts which ex- 
haust and undermine health and unfit workers for a 
long period of service ; whereas it stands for the reverse, 
the taking of every precaution to preserve and main- 
tain health and to prolong the productive period of 
workers. Efficiency demands working conditions most 
conducive to health, and a wage which assures a stand- 
ard of Hving of a nature to give health, recreation, and 
The pro- ^ higher level of intelligence. It banishes 
tectionof child labor, and assures the training of chil- 
chiidren. dren to become normal men and women, and 
developed mentally, physically, and morally. Efficiency 
demands physically sound and healthy bodies, a high 
intelligence, and a high sense of morality, and is gained 



EFFICIENCY 39 

not by a greater expenditure of energy, but by turning 
the energy used into the most productive channels. 

Efficiency demands close attention to the training 
and the education of boys and girls, in order to develop 
them into men and women, physically, men- Benefits 
tally, and morally fitted to become efficient from 
producers. This will in the future be the efficiency, 
means of raising industrial workers to a higher intelli- 
gence, which will be a decided benefit to them, and to 
society in general. Efficiency, in place of degrading 
workers, lowering standards of living, and narrowing 
intelHgence, works to the advantage of every laboring 
man in raising standards of living, in guaranteeing him 
means of obtaining higher intelHgence, and in making 
him not only more skilled and more intelhgent, but a 
better citizen. The efficiency movement demands in- 
telligent workers and the employing of these in a way 
to attain the best possible results, with a given expen- 
diture of time, energy, and outlay. This should be 
done by conserving in every way not only health, but 
physical and nervous vigor, and by creating conditions 
which permit workers to work out their own happiness 
and contentment. 

Efficiency is based upon knowledge. It requires the 
obtaining of accurate information, and then the correct 
application of it. Efficiency is simply the importance 
careful investigation of every problem of the ofknowi- 
business world in order to determine its best ®^^®- 
solution. It introduces scientific methods of research 
to problems of business. Every step in business should 
be based upon definite knowledge of how it 
can best be done. Efficiency depends upon ^tai^ng 
knowledge which is not a matter of guess- 
work, but which comes from a careful, painstaking, and 
scientific investigation. It requires critical observation, 



40 ECONOMICS OF EFFICIENCY 

accurate description, careful analysis, and careful classi- 
fication of industrial and business phenomena. The 
aim is to get accurate knowledge, not only about ma- 
chines and materials, but also about workers. Accurate 
knowledge is used as a basis for devising means for the 
eUmination of wastes of time, material, and energy, and 
is the corner stone of efficiency and of success. 

Ignorance, rule-of-thumb methods, and lack of skill 
are factors increasing costs and inefficiency. What is 
Importance ^^ore wasteful and costly than the old method 
of scientific of leaving every worker to guess at the best 
study of -^ay of doing his work ? Customary ways of 
doing things are inefficient and wasteful. We 
are living in an age of science, but at the same time in 
one of great wastes. The requirement is the directing 
of science to business in all of its manifold phases, in 
order to eliminate wastes. The introduction of scientific 
study of business methods aroused, at first, much criti- 
cism from all classes of business men, but to-day this 
attitude has materially changed, and business men are 
realizing that scientific study in business is the right 
arm of business progress. Business men are daily 
reahzing that in this age of keen competition and of 
close margins it is necessary to run business on a scien- 
tific basis. The careful study of every phase of business 
and the application of science and accurate knowledge 
are factors increasing efiiciency. Those who do not heed 
the demands of efficiency, and still conduct their business 
on the old system of guesswork, will find themselves 
severely handicapped, in their struggle to make profits. 
Only a few years ago, if a man advanced a new idea 
in business, he found himself and his inno- 
new ideas vation ridiculed on every side. To-day, busi- 
ness men are on the search for new ideas 
which will be helpful in lowering costs, and all suggestions 



EFFICIENCY 41 

are given a respectful hearing. Business men are real- 
izing the extent of waste in the old methods of doing 
things, based on haphazard and guess. They are hav- 
ing brought home to them with increasing emphasis, 
the necessity of a careful study of every phase of eco- 
nomic activity in a business enterprise, so as to ascer- 
tain the best methods of performance with the greatest 
elimination of wastes. This is the age of science in busi- 
ness, and also the age of lowering costs by elimination 
of wastes. With this reaHzation, and the application of 
science to business, the business world will make greater 
advancement and greater industrial progress. 

Efficiency is the applying of scientific method, in- 
vestigation, and research to business. There are many 
ways of doing things, but only one is best. 
This is the most efficient way, and the aim bes^tway 
of every business man should be to find the 
best way for every task in his business, and to have the 
actual performance approach as nearly as possible to 
the best. The old method does not pay any heed to 
ascertaining the best way, while the new, or efficient 
method finds the best way first. When business is 
conducted on improved methods, it is run by proved 
knowledge, rather than by guess. Efficiency utilizes to 
the fullest extent the valuable experience of the past. 
A science of work takes the place of the old rule-of-thumb 
methods. A substitution of exact knowledge is made 
for guesswork, efficiency increases, and at the same 
time wastes are reduced and profits increased. 

The ascertaining of the best way for every task is 
the first problem of efficiency. The second is the mak- 
ing of the plant and equipment in such condi- Problems 
tion that the one best way may be accom- to be solved 
plished in the time prescribed by experts. "^ efficiency. 
The third is the selection and the training of the workers 



42 ECONOMICS OF EFFICIENCY 

and the giving of instructions, so that they may, with 
the equipment, perform their tasks in standard time. 
The fourth is proper remuneration of labor, so that 
there will be an incentive for workers to follow instruc- 
tions and to do their part in performing the tasks ac- 
cording to standard methods in standard time, Efl&- 
ciency systems are various methods for the purpose of 
increasing the efficiency of each individual in a plant. 
Efficiency is gained not by a greater expenditure of 
energy, but by the eUmination of waste, and by getting 
the greatest productive results from energy, materials, 
and equipment. 

There are various degrees of efficiency. The elimina- 
tion of wastes of time, energy, or materials, it matters 
Various de- ^^ot how slight, results in increasing efficiency, 
grees of Efficiency is of special interest to the man with 
efficiency. ^ small business, as it is to the milHon-doUar 
corporation. It is giving business a critical aspect, 
making a study of how things should be done, and how 
they are done. It would appall the average man, if 
he were aware of the profits he is losing annually through 
ignorance of how work is performed, and of how it should 
be performed. Every saving of waste is a step towards 
greater efficiency and one towards increasing profits. 
Efficiency has assumed such importance, that it is con- 
sidered one of the fundamentals of the industrial system. 

QUESTIONS 

1. Give the evolution of the efi&ciency movement. 

2. What is efficiency? How is it ascertained? 

3. What is the value of computed efficiencies? What pre- 
cautions should be taken in computing efficiencies ? 

4. What will the public gain by the adoption of efficiency 
methods in public administration? 

5. What wastes exist in our educational systems ? How may 
they be eliminated? 



EFFICIENCY 43 

6. What is the importance of physical and moral training ? 

7. Compare the old methods for obtaining increased labor 
results -with the new. 

8. Compare the old methods of doing work with the new. 

9. What precautions should be taken in the introduction of 
changes ? 

10. Mention the different kinds of waste. How may each be 
eliminated ? 

11. What is the relation between strenuousness and efficiency ? 

12. Mention the benefits gained by the laboring classes from the 
adoption of efliciency methods. 

13. What is the importance of scientific study in business? 

14. Why should business men be on the continual search for 
new ideas ? How may new ideas be obtained ? 

15. What problems must be solved in efficiency? 

REFERENCES 

Books 

L, D. Brandeis, "Scientific Management and Railroads"; 
N. A. Brisco, " Economics of Business," Ch. IV ; " Business Admin- 
istration," edited by W. D. Moody, Vol. II, Ch. VII; H. N. 
Casson, "Ads and Sales," Ch. I; M. L. Cooke, "Academic and 
Industrial Efficiency," Carnegie Foundation for the Advancement 
of Teaching, Bulletin 5 ; H. Emerson, "Efficiency" ; H. Emerson, 
"The Twelve Principles of Efficiency"; H. L. Gantt, "Work, 
Wages, and Profits," Chs. I, II; L. H. Gulick, "The Efficient 
Life," Ch. II; H.,^unsterberg, "Psychology and Efficiency"; 
W. C. Redfield, "The New Industrial Day," Chs. VIII, IX; H. 
A. Ruger, "The Psychology of Efficiency"; W. D. Scott, "In- 
creasing Human Efficiency in Business," Chs. I, X. 

Articles 

H. G. Bradlee, " Limitations of Scientific Efficiency," American 
Machinist, Vol. 34, p. 984; L. D. Brandeis, " The New Concep- 
tion of Industrial Efficiency," Journal of Accountancy, Vol. 12, 
pp. 35-43; F. E. Cardullo, "Causes of Industrial Inefficiency," 
Machinery, Vol. 18, pp. 931-935; H. Casson, "Personal Effi- 
ciency," Greater Efficiency, Vol. 3, pp. 67-74; F. A. Cleveland, 
"Efficiency in Public Management," The Efficiency Society, 



44 ECONOMICS OF EFFICIENCY 

Transactions, Vol. I, pp. 219-227 ; F. B. Copley, "How it Works: 
What Manufacturers and Workmen are getting out of Scientific 
Management," American Magazine, Vol. 75, pp. 11-17; J. C. 
Duncan, "Efficiency," Journal of Accountancy, Vol. 12, pp. 26- 
34; T. A. Edison, "How Science Aids Business," System, Vol. 10, 
pp. 229-231 ; H. Emerson, "Efficiency," System, Vol. 19, pp. 37- 
44; H. Emerson, "Philosophy of Efficiency," Engineering Maga- 
zine, Vol. 41, pp. 23-26; H. Emerson, "Standards of Efficiency 
in Shop Operations," Iron Age, Vol. 88, pp. 204-206; C. B. Going, 
" The Efficiency Movement," The Efficiency Society Transactions, 
Vol. I, pp. 11-20 ; H. L. Gantt, "Industrial Efiiciency," Machinery, 
Vol. 18, pp. 700-702; H. L. HoUingworth, "The Psychology of 
Efficiency in Work," Scientific American Supplement, Vol. 74, 
p. 59 ; D. S. Kimball, "Another Side of Efficiency Engineering," 
American Machinist, Vol. 35, pp. 263-264 ; H. T. Lewis, " Problem 
of the Efficiency of Labor," Popular Science, Vol. 82, pp. 153-162 ; 
F. C. Myers, "Some Facts Regarding Efficiency," Southern 
Machinery, Vol. 29, pp. 3-4 ; M. W. Mix, "Efficiency, Its Use and 
Abuse," Southern Machinery, Vol. 30, pp. 178-180 ; O. E. Perrigo, 
"Real Efficiency, What It is and How to Attain It," Southern 
Machinery, Vol. 29, pp. 185-187; H. S. Philbrick, "Scientific 
Management," World To-day, Vol. 21, pp. 1167-1170; Polakov 
and Hanmer, "What is Efiiciency?" Gassier, Vol. 44, pp. 82-86; 
J. C. Smallwood, "The Efficiency Principles of Technical Educa- 
tion," Engineering Magazine, Vol. 42, pp. 915-920; H. F. Stimp- 
son, "Efiiciency in Its Relation to the Consumer," Gassier, Vol. 40, 
pp. 313-317 ; H. H. Suplee, "Some Basic Principles of Efi&ciency," 
Gassier, Vol. 42, pp. 233-238. 



^ CHAPTER III 

Management and the Plant 

The problem of increasing efficiency is essentially a 
problem of the management. An attempt to reduce 
management to a compact body of fixed rules ^j^^ founda- 
and principles common to all enterprises tion of ef- 
would be foolhardy, yet there are certain es- ficientman- 
tablished and well-defined laws and principles ^^emen . 
which are of great value as aids in determining the or- 
ganization of any particular business enterprise. It 
was only a few years ago, that business men ridiculed 
the idea of using in business anything that was taken 
from the writings of others. It was not denied that 
knowledge of management would be of great value, but 
it was believed that one could learn to manage only by 
going out and watching others manage. Recently, it 
was discovered that good management is founded on 
laws, practices, and methods which may be expressed 
in simple language, and that their study is of great 
assistance to business men in making their management 
more efficient. 

The foundation of management is efficient organiza- 
tion. Organization consists of individuals, and the 
object is to unite these into a body working 
for a common purpose. Extreme care should tion^°its' 
be taken in the selection of men, and their meaning 
assignment to tasks for which they are es- ^q^^™" 
pecially adapted and properly trained. The 
duties of all should be carefully defined, so that no 
friction will arise through a misunderstanding in giving 

45 



46 ECONOMICS OF EFFICIENCY 

or in obeying orders. The efficiency of an organization 
depends upon the fact that each part of the business 
enterprise is placed under the control of a person well 
qualified to perform the duties in the best possible 
manner. An organization to be efficient should look 
after and take care of the men who compose it, because 
their bodily and mental development is an important 
factor bearing upon efficiency. Loyalty, enthusiasm, 
and cooperation of workers in a business enterprise 
are absolute necessities for success and efficiency, and 
their presence is what every management should strive 
for. These three requisites cannot be obtained unless 
the management inspires confidence by the assurance 
of proper reward for services, and proper place, tools, 
and treatment while at work. An organization should 
have at its head a strong resourceful leader assisted by 
a carefully selected, well-trained, and enthusiastic staff 
and working force. There should be a close contact 
between management and employees, bringing with it 
a close cooperation, and a working for the success of the 
business enterprise. 

A basic structure for an efficient organization is sys- 
tem. System consists of rules and regulations which 
are worked out and adopted as governing the 
meaning **^ actions of members of an organization. Sys- 
tem is an absolute necessity in every business 
enterprise, and is a fundamental for efficiency. Little 
can be accomplished without its aid, and every business 
enterprise, large or small, should have some organized 
method of transacting business, which is system, though 
it may not be known by that name. Every one admits 
that a consistent application of clearly defined rules 
and methods is effective in bringing better results. 

An efficient system is evolved from within an organiza- 
tion and is not brought in from the outside. No sys- 



MANAGEMENT AND THE PLANT 47 

tern fits all cases because systems vary with enterprises. 
If a system proves a success under one environment, and 
under certain conditions, that is no guarantee j^^ uisites 
that it will prove successful in another enter- for an ef- 
prise. A system which is effective in one ficient 
business enterprise may work with little °^^ ^^' 
success in another and be an absolute failure in a 
third. Each business enterprise has its own special 
conditions, and these should determine the system that 
is to secure results. The success of a system depends 
largely upon its proper installation. Careful study 
should be made of the enterprise by one whose knowl- 
edge of conditions as they exist makes him most com- 
petent to know the situation, and he should devise 
proper rules, regulations, and methods of procedure. 
With care in the selection of simple forms, easy to an- 
alyze, and giving sufficient details, but eliminating un- 
necessary data, a system may be evolved which if prop- 
erly conducted will be successful, and prove a valuable 
asset to a business. System is a good serv- 
ant, but a bad master. A system when once system ^ "^ 
introduced should not be subject to sudden when and 
changes. This does not mean that the rules ^o^^^tro- 
and the regulations laid down by a system 
should not be changed to meet new conditions. Care- 
ful investigation should be made by men competent to 
analyze new conditions, and only on their recommenda- 
tion should changes be introduced, and in no case until 
a most searching and thorough investigation has been 
made. Every progressive enterprise is continually grow- 
ing and so may soon outgrow its system. An efficient 
system should be flexible and subject to change to meet 
new conditions. A system to continue efficient should 
grow with a business, and be changed to meet new condi- 
tions introduced through development and improvement. 



48 ECONOMICS OF EFFICIENCY 

Efficiency in any business undertaking cannot be 
obtained and maintained without system and organ- 
ization. System saves time, eliminates inef- 
o£ system^^ fective and unnecessary efforts, cuts expenses, 
and assures accuracy and dispatch. It en- 
ables the management to dismiss details, and at the 
same time to keep in touch with the different parts of 
a business. A good system causes coordination of all 
the best efforts of an organization, the cooperation of 
all of its members, enthusiasm for the success of the 
business, and harmony between the departments and 
members of an organization. Such a system keeps a 
business enterprise together and is an important essen- 
tial in efficiency. 

Efficiency demands that the management maintains 
proper coordination between the different factors en- 
tering into a business enterprise. Coordina- 
tion; its' tion is arranging the elements of a business 
meaning SO that cach is working to capacity, and at 

andim- ^j^g same time keeps every other element 
portance. , . , . , ,. ^ .•' , . 

which IS dependmg upon it working to its 

capacity. Men are frequently prevented from working 
to full capacity by doing work that should be done by 
others, as, for example, a carpenter carrying his lumber. 
A machine is frequently prevented from its full capacity 
by the loafing of an attendant, by carelessness in feed- 
ing, by not being run at full speed, or by lateness in 
starting. For good coordination, four essentials are 
necessary : proper planning and routeing of work ; 
regular arrival of materials and suppHes; prompt and 
Essentials proper repairs to equipment; and proper 
for good CO- quaHty of supplies. In the struggle to obtain 
ordination, efficiency, the necessity for proper coordina- 
tion assumes greater and greater importance. It lessens 
waste, and at the same time assures regular and simul- 



MANAGEMENT AND THE PLANT 49 

taneous efforts working for a common purpose, the suc- 
cess of the business enterprise. 

Efficiency demands that the management should 
eHminate as many details as possible. Nevertheless, 
the inanagement should know accurately the xhehan- 
actual conditions of every branch of a busi- dUng of 
ness. It is absolutely necessary and im- '^^*^^- 
portant that the executive head be thoroughly familiar 
with his business, its needs, and its operations. The 
only proper method of gathering the necessary infor- 
mation for the executive head is by a proper series of 
reports. Efficiency cannot be obtained to any degree 
in management without reports, and these should be 
simple and accurate, containing that which 
it is necessary for the management to know, forTeports 
and eliminating all unnecessary and unim- 
portant details. The heads of the various departments 
should be thoroughly acquainted with their work and 
possess, among other quahties, that abiHty to accurately 
obtain and summarize into simple reports the details 
necessary for their chief to know. With an efficient 
system of reports, the executive head centers his work 
at his desk, and has constantly before him all the im- 
portant information concerning his business. He can, 
without leaving his office, keep in touch with the work- 
ings of every branch of his business enterprise. The 
time of the executive head is too valuable to be con- 
sumed with details, which may just as well be performed 
by minor officials, and time so spent is time wasted. 

IMs__a poor manager who does not delegate definite 
responsibilities to his subordinates. Fre- gy^oj^j. 
quently, subordinates become dissatisfied when nates and 
all responsibihty is taken away. A manager responsi- 
should give all possible weight to the opinions 
of his subordinates, and, as he gains confidence in their 



50 ECONOMICS OF EFFICIENCY 

judgment, leave many points entirely to their decision. 
Nevertheless, every business manager should insist that 
his subordinates follow out his decisions as to methods 
of work, handling men, and other business matters. 

Efficiency demands that the management should 
always be on the alert for new ideas or new methods 
Suggestions ^hich might be incorporated in the business 
and ideas; and increase efficiency. Information is the 
their very soul of business progress. The business 

impor ance. ^qj.|j^ jg presenting continually to the eyes 
of every business man suggestions and ideas which may 
be applied to his own business. Many business men 
find that it pays to pay large sums to their employees 
for suggestions. Employees are encouraged to offer 
suggestions for increasing the efficiency of the business 
enterprise. Every suggestion accepted and adopted 
carries with it a prize of a sum of money to the one who 
offered it. Many business enterprises keep a special 
staff seeking new processes, ideas, and methods that will 
result in greater efficiency. The modern efficient busi- 
ness enterprise should be kept up to date, as the old way 
of doing things soon becomes obsolete. New improve- 
ments, methods, processes, and systems often arise 
from ideas obtained here and there, and changed to 
meet conditions of an enterprise. Efficiency demands 
a constant study of every branch of a business, as well 
as a constant study for new ideas and suggestions which 
might make it possible to devise new methods, processes, 
machines, materials, and equipment which would make 
it possible to produce more efficiently. 

Every management in its efforts to eliminate wastes 
or obtain the greatest efficiency has certain demands 
made upon it. First, it should get its work performed 
accurately and rapidly. The greater the ehmination 
of unnecessary efforts, movements, and wastes of time, 



MANAGEMENT AND THE PLANT 51 

the nearer is the management to the coveted goal of effi- 
ciency. Secondly, it should get the maximum output 
from machinery and equipment. This neces- Requisites 
sitates perfect coordination, and the best for the 
possible machines, tools, and equipment, elimination 
Thirdly, it should get the maximum output ° ^^^ 
as well as the maximum quaHty from materials con- 
sumed. Fourthly, it should market goods at the highest 
price. Lastly, it should take pains to see that improve- 
ments in methods and equipment are introduced, in 
order to keep the business abreast of the times and 
prevent it from becoming obsolete. 

Efficiency demands on the part of the management an 
accurate and efficient cost-accounting system. Busi- 
ness men formerly did not think it necessary 
to make any study of costs and determine as tem; its 
nearly as possible their accuracy. Costs meaning 
were based on guesswork. Among the first ^^^^^ 
requisites of efficiency to which business men 
gave heed was that demanding the eHmination of guess- 
work in finding costs. This introduced cost accounting. 
An accurate cost system is an absolute necessity in every 
business enterprise. It consists of a system of records 
which enables a business man to ascertain with fair 
accuracy, not only the production cost of a product, 
but the constituent elements of that cost. The records 
are obtained by means of printed cards. Care should 
be taken to ask only for that information which is neces- 
sary to obtain costs. It is the work of a cost expert to 
ask for essential information, and employees should be 
instructed in ffihng out the cost cards, so that all ex- 
penditures will be charged in the right places. No 
fixed rule can be laid down for what information to ask 
for, as this varies with different business enterprises. 
The cards should be a suitable size for fiHng and for 



52 ECONOMICS OF EFFICIENCY 

easy reference. Nothing is so essential to a cost system 
as a good indexing and filing system. This has been 
neglected in the past, and has been the cause of the 
failure of many cost systems. 

The principles of a cost system, generally speaking, 
are the same for all business enterprises, but their ap- 
Requisites pHcation differs according to local conditions, 
for a cost A succcssful System must be developed for 
system. each business enterprise, and should be es- 
pecially adapted to meet local conditions. A thorough 
understanding of the general principles of cost account- 
ing and a thorough knowledge of local conditions are 
necessary for the planning of a successful cost system. 
No general rigid system can be outlined and made 
standard, because the cost system should in every in- 
stance be the product of the particular business enter- 
prise where it is to work. 

A properly devised cost system readily gives in de- 
tail the efficiency of working conditions in every part 
Advantages of a plant. It shows if materials are being 
of cost economically used, and if the proper amount 

system. ^j finished product of the desired quality is 
obtained. If the proper amount is not secured, it 
points out where to investigate to discover the cause 
of the difference. The accurate account kept of pro- 
ductive workers tells not only the exact amount, but 
the kind of work that each is doing. Loafing and pad- 
ding of accounts are prevented. The management 
knows at all times the efficiency of each productive 
worker. The management should use the figures as- 
certained by a cost system to guide it in studying the 
business enterprise, in order to increase its efficiency. 
A business man should know, what expenses should be, 
and by comparison with the actual expenses the wastes 
will be shown. This demands that careful study is 



MANAGEMENT AND THE PLANT 53 

previously made and correct costs ascertained. After 
this is done, a cost system proves of the greatest possible 
service for making a comparison of actual expenses 
with what they should be, and showing exactly where 
costs should be pruned. The management should strive 
to learn if it is getting the greatest output, the highest 
quality, and the best service from materials, machines, 
and men. A good cost system tells that, but it is of 
little service, unless it is carefully studied and made 
the basis for investigation, in order to discover whether 
it is possible to prune costs. There is no business man 
who can afford to conduct his business without a re- 
liable cost system. It is one of the requisites for efi&- 
ciency, and is one of the most valuable assets in business. 
In every manufacturing plant, an important factor 
bearing upon efficiency is location. A well-equipped 
and properly managed plant may fail in a piantioca- 
poor location, while the existence of a badly tion and 
managed concern may depend upon its favor- ^^"^'^'^y- 
able location. The problem of location is one for the 
management, and its correct solution frequently re- 
sults in much saving, and many additions to profits. 
Several factors have a bearing upon factory pactorsto 
location, as, for example, market for sale of be con- 
the product, suitable transportation facihties, sidered in 
nearness to raw materials, power facihties, 
available labor supply, favorable cHmatic conditions, suit- 
able water supply, available capital, and local advantages 
and disadvantages. The necessary factors in each in- 
stance depend upon the character of the article manu- 
factured. Sometimes one factor, and sometimes another, 
is the one that should be carefully studied in choosing 
the place best suited for a particular manufacturing plant. 
Location is an important problem with mercantile enter- 
prises, as well as with other kinds of business. 



54 ECONOMICS OF EFFICIENCY 

The design of buildings used in a business enterprise 
has an important bearing on eificiency. No standard 
Design of P^^^ ^^^ ^^ given, because the design which 
buUdings gives efficiency depends upon the kind of 
^^^ _ business conducted, and upon local condi- 

ciency. j^JQj^g^ -pj^g chief consideration is a careful 
study of the different phases of the business to be carried 
on, and the special local conditions. The size and the 
design of the buildings may then be made, to secure the 
greatest economy of space and the greatest saving of 
time in the particular case. Buildings suited for one 
kind of business may be entirely unsuited for another. 
Whatever the design of buildings, the chief aim should 
be to furnish proper space for the performance of work, 
with the greatest facility, the greatest saving of time, 
and the least expenditure of money, effort, and power. 
The success of many enterprises often depends largely 
upon their buildings, and no money should be spared 
in obtaining a design that suits the character of the 
work to be performed. 

A business plant should be equipped with the latest 

and the highest grade equipment. In a manufactur- 

. ing plant, the equipment means success or 

for*iiigh-^ failure to the manufacturer. The problem 

grade ma- of arrangement of equipment is an important 

chmes and factor in every business, and often time and 
tools. -^ ' 

money are wasted by not paymg attention 

to it. Are there sufficient machines of the best grade 
to do the work required ? This is an important ques- 
tion for every manufacturer to answer. There is a 
second question that needs solution. If a difference 
exists between the rated capacity of a machine and its 
actual output, what is the cause, and what should be 
done to raise the output to the rated capacity? In a 
manufacturing plant, efficiency demands that the man- 



MANAGEMENT AND THE PLANT 55 

agement pay particular attention to the attending of 
machines. Careful watching of parts of machinery for 
loose or weak parts, regular cleaning, and proper oiling 
frequently prevent breakages. The management will 
find it profitable, from the point of efficiency, to employ 
repair men whose duties are to see that machines are 
properly tested, cleaned, and oiled, and that machines 
and tools are always in the best repair. 

Efficiency demands that machines and tools used 
should be the best adapted for the performance of the 
work which is required. Invention is con- Method of 
tinually bringing into existence new machines assuring 
and tools the introduction of which may ™°^* ^^' 
cause greater efficiency in production. Fre- chines and 
quently, a manufacturer is placed at a *°°^^- 
decided disadvantage, because his competitor is 
producing more efficiently and at lower costs, due to 
the introduction of recently invented machines. To 
assure the use of the best possible machines and tools, 
an expert is often employed to carefully 
study those in use, others adapted to the an exp^t ° 
same kind of work, and new inventions, to 
see if there are any that allow production to be carried 
on more efficiently, and at lower costs. To lead the 
van of competition is the ambition of every manufac- 
turer, and to do so, he should produce with a high de- 
gree of efficiency and with low costs, but at the same 
time quaHty and workmanship should not suffer, A 
very important factor in increasing efficiency, and one 
which every factory management should give careful 
consideration, is to have the factory equipped with the 
best possible machines and tools. An urgent demand 
of efficiency in manufacturing is to obtain the rapid 
production of goods of the highest grade, and at the 
lowest cost. This necessitates having the machinery 



S6 ECONOMICS OF EFFICIENCY 

in operation, as nearly as possible, loo per cent of the 
working time. To accomplish this, too much stress 
cannot be placed upon obtaining the best possible supply 
of tools, always in the best condition, and distributing 
them so that a worker has ready at hand the proper 
tool in the best possible shape. 

Materials of various kinds are important expense 
items in every manufacturing plant. Great wastes 
Quality; its Gxist in their buying and in their use. Ef- 
importance ficiency demands the ehmination of these 
m buying, wastes, and their ehmination is an important 
problem for the management of every business enter- 
prise. Careful investigation should be made to dis- 
cover the grade that gives the best product with the 
least waste. Many plants have finely equipped labora- 
tories for testing quality of goods, and experiments are 
constantly being carried on to discover if different 
materials or grades can be more economically used. 
The question is to discover in any good the quality of 
the part that is utilized, as in wood pulp, it is the fiber, 
in coal, the heat unit, etc. What the management 
wishes to know is the grade which contains not only 
the best quality, but also the greatest amount per unit 
of that quality. The same care should be exercised in 
buying machines and tools, as a flaw in steel may not 
only cause loss to machinery, but additional loss through 

the stoppage of machines and the idleness of 
poor quality* ^en. Paying strict attention to quaHty in 

order to obtain the best materials for the 
money expended, is an absolute necessity in every 
business enterprise where goods are bought. A second 
consideration, as important as the first, is the care- 
ful testing and inspection of goods, when dehvered, 
to see that the quaHty and the amounts ordered are 
obtained. 



MANAGEMENT AND THE PLANT 57 

QuaKty is an important consideration in production. 
Every plant should strive to turn out goods of the high- 
est quality, and none except these should be 
allowed to leave the premises. Precautions producti^ 
should be taken to see that only goods of the 
highest grade are produced. Competent and trustworthy 
inspectors should be chosen, and the raw materials 
should not only be carefully inspected, but a separate 
inspection should be made during each process of pro- 
duction, and, finally, the finished article should pass 
most rigid tests. Quahty in goods is a demand of effi- 
ciency and cannot be overlooked. It should receive 
the closest attention in the buying of materials and in 
the production of finished goods. Business failures are 
frequently due to neglect in not buying according to 
quahty, in not testing goods delivered, and in careless- 
ness in allowing goods of low quality to go on the market. 

The economical use of materials is an important ques- 
tion in every business enterprise. The ignorance of 
employees in not knowing how to care for Economical 
materials frequently causes serious loss. Ex- use of ma- 
posure to Hght, moisture, or dryness causes loss, teriais;_ how 
which care in handhng prevents. Many 
managements never give a thought to instructing their 
employees in the economical use of materials. A man- 
agement should instruct its employees in the economical 
use of materials, and insist that its instructions are 
carried out. A few lessons in planning prevent waste 
in the cutting out of garments, leather goods, etc. The 
management should make a thorough and careful study 
of how to get the desired result with the most economical 
use of the materials involved. The most economical 
use should be made standard, and the working force 
engaged in using materials should be carefully instructed 
in the standard, and no other should be allowed in the 



58 ECONOMICS OF EFFICIENCY 

plant. A few instructions in firing and keeping boilers 
in proper shape frequently save hundreds of dollars in 
fuel. Proper oiling and the careful use of oils will often, 
in the course of a year, add many dollars to profits. 

Efficiency demands attention to waste products. 
Consideration should in every business enterprise be 
Savings given to waste material to find if some eco- 
from waste nomical use cannot be made of it. Many 
products. large plants have added greatly to their prof- 
its by the use of waste products. Many manufactur- 
ing plants save annually many hundreds of dollars in 
fuel by the expenditure of a few dollars to provide 
equipment for obtaining power by the burning of saw- 
dust, shavings, and other waste products. Every one 
knows of the vast sums made by the large packing- 
houses and by the oil refineries from by-products. 
Savings can be made in small plants, as well as large, 
by attention to odds and ends. Scores of devices are 
in use throughout the country for the utilization of 
wastes, and this is an item which cannot be overlooked, 
and is one which should receive careful attention. 

The storage of materials is an important problem 
which deserves the careful attention of the management. 
Goods should be kept in some specifically 
materials designated place, either room, shed, or yard. 
Those which are valuable and easily carried 
away should be safely kept, while the bulky and less 
valuable may be stored in yards or sheds. All goods 
affected by exposure to weather or by the elements 
should be protected by covers. 

The storeroom in a plant deserves careful attention. 
Requisites It should be Centrally located and permit of 
of a store- easy access. Plants both large and small 
room. should reserve proper and sufficient space for 

stores. In the latter, the owner himself may take 



MANAGEMENT AND THE PLANT 59 

active charge or he may assign it, as part of the work 
of a trusted employee, while in the former, a special 
person is assigned to take charge, and, frequently, it is 
necessary to have a large clerical force to assist him. 
The arrangement of the storeroom should be of such 
a nature as to allow the greatest possible dispatch 
in filling orders. Each article should have its own 
place, suited in arrangement, capacity, and location to 
the requirements of efficient use. Bins, shelves, racks, 
etc., should have easy access and be carefully marked. 
Nothing pays so well as proper arrangement and sys- 
tem in a storeroom. A management may eliminate 
much waste by having a centrally located, properly 
arranged, and systematically run storeroom. 

There should not only be system in the arrangement 
of goods, but also in the recording of goods received and 
given out, so that the quantity remaining on 
hand may always be known. This is a neces- recor^g' 
sity in order to prevent overstocking, loss of receipts and 
time arising from shortages or searching for ^^^"f ^ of 
mislaid goods, and deterioration of stock 
through age. The presence of any one increases costs, 
and the absence of all is demanded by plants working 
for greater efficiency. Extreme care should be taken 
in issuing goods. A competent man should be in charge, 
and goods should be issued only through him or by his 
orders. Careful records should be kept of all goods 
received, and they should, as soon as possible, be dis- 
tributed to their proper places. A record or permanent 
inventory should be kept of the receipts and the issues 
of goods. This shows, at any time, the amount of 
each kind of goods in stock. The simplest method is 
to attach a card or ticket to each stock bin or shelf, on 
which all receipts and issues are recorded. A good stock 
system works towards greater efficiency by being a 



6o ECONOMICS OF EFFICIENCY 

safeguard against waste of materials, theft by em- 
ployees, and losses from other causes. 

Efhciency draws the attention of the management 
to the moving of goods in a plant. Time may often be 
Moving saved and costs lessened by using proper facil- 
goods in a ities for moving goods. Goods are usually 
plant. moved several times during the process of pro- 

duction, as the moving of goods in and about the place 
of storage, from storeroom to shop or different shops, 
from one machine to another, and of all finished goods 
to the stockroom. Modern methods should be used 
in conveying goods. Space will not permit the mention 
of the many devices in use for moving goods, yet con- 
veying in many factories is carried on by obsolete 
methods. A management should pay particular at- 
tention to the problem of conveying goods, as its satis- 
factory solution saves time, lessens costs, and increases 
efficiency. 

The shipping of goods in every manufacturing and 
mercantile enterprise requires careful attention. If a 
System in management has not a good system for the 
shipping shipping of goods, losses will continually occur, 
goods. js^Q goods should leave any business enterprise 

unless they go through the shipping room, or are shipped 
on instructions from the shipping clerk. Careful in- 
spection should be made of filled orders in order to see 
that only goods ordered, and of the particular grade 
ordered, are sent. This saves much expense, in pre- 
venting the shipping of goods not ordered, or of a differ- 
Lossesfrom ^^^ grade. Carelessness in shipping costs 
lack of many plants large sums of money annually, 

system. Goods sometimes leave a plant without in- 
voice, and this usually means loss. Again, goods are 
frequently sent to the wrong destination, or are allowed 
to go the wrong route, and either means additional ex- 



MANAGEMENT AND THE PLANT 6i 

pense. It should be an absolute rule that no goods 
should leave a plant without careful inspection and 
proper shipping instructions. 

The questions of packing and of routeing are of the 
utmost importance in pruning costs. This is the special 
study of the shipping clerk, but in large plants 
it is assigned to experts. Railroads classify goods'^^ 
goods and fix rates according to classifications. 
Often, a httle different crating or packing puts goods in 
a different classification and at a lower rate. The classi- 
fications affecting goods of a particular plant should be 
carefully studied, and the goods packed so as to obtain 
the lowest rates. 

The proper routeing of goods is an important task in 
every plant shipping commodities. The task of finding 
the route which will get goods to their destina- 
tion in time, and at the lowest cost, is of special go^dg"^^ 
interest to a large class of business men, yet 
how many pay attention to it? The careful study of 
routes and proper routeing save a large concern many 
hundreds of dollars annually. Proper routeing means 
a saving even to a plant shipping a few thousand dollars' 
worth of goods, yet it is a part of management which has 
been, and is to-day, badly neglected. 

Every management is confronted with the task of 
inventory taking at least once a year. A running or 
permanent inventory does not do away with inventory; 
the annual inventory, because the latter is its impor- 
necessary to test the accuracy of the former. *^°<^®- 
The value of an inventory depends largely upon its 
accuracy. The greatest care should be exercised to 
assure correctness in counting, measuring, and weigh- 
ing goods, and in listing their amounts. Only reliable 
and trustworthy clerks should be chosen for the task, 
and every one engaged in taking an inventory should 



62 ECONOMICS OF EFFICIENCY 

be impressed with the fact that accuracy is the watch- 
word. An annual inventory is an absolute necessity 
in every business enterprise. It furnishes not only 
the actual state of affairs, but also records for careful 
study. It shows whether or not departments are over- 
or under-stocked. It draws the attention of the man- 
agement to the presence of undesirable stock, which 
should be sold at any price, and its place taken by sal- 
able goods. Without a stock system, the inventory is 
of invaluable service, and with it, it tests the accuracy 
of stock records. 

Efficiency demands standardization wherever possible. 
In a producing plant there should be standard products 
standard- of a standard quality. In making standard 
ization; its products, it is possiblc and advantageous to 
necessity. spend large sums of money for special ma- 
chinery and equipment, which not only reduce costs, 
but greatly increase rapidity of production. The de- 
termination of standard quality in product and the 
taking of rigid measures to prevent any goods below 
standard going on the market, give a decided advan- 
tage to a business firm. It is equally as important to 
have standard machines, standard tools, standard 
methods of using and caring for them, and standard 
methods for every operation. The standardization of 
methods of work is one of the chief demands of efficiency. 
It has made some progress, but as its necessity is daily 
becoming more recognized, considerable advancement 
may be expected during the next few years. The ten- 
dency of the modern industrial world is toward stand- 
ardization in every form of economic activity. The 
efficiency movement is hastening the introduction of 
standardization in various phases of business activity. 
Standardization is recognized as one of the basic struc- 
tures of efficiency, and one of the chief factors working 



MANAGEMENT AND THE PLANT 63 

towards lowering costs, increasing markets, and assur- 
ing industrial progress. 

According to the census of 1910, the percentage of 
total expenses of all manufacturing industries paid out 
in 1909 for materials was 65.8. This empha- 
sizes the importance of buying in a manufac- o™buy^g*^^ 
turing plant, and it is of equal importance in 
every mercantile establishment. To obtain goods at 
the lowest possible prices is of the greatest importance 
to every business man, and, frequently, decides the suc- 
cess or the failure of a business enterprise. Good buy- 
ing, or obtaining the grade of goods needed for business 
purposes, in suf&cient quantities to meet the demands 
of business, and at the lowest possible prices, is a req- 
uisite for efficiency, and is a problem to which every 
management should give the closest attention. A 
good buyer will not overstock, and will always keep 
on hand a proper supply of goods to meet the demands 
of business. He will take advantage of low prices on 
staple goods to buy additional quantities, but he will 
not buy in such quantities as to financially embarrass 
his firm or to cause loss in deterioration or from other 
causes before the goods are used or disposed of. Good 
buying is an important factor in every business enter- 
prise, and promotes efficiency as well as adds to the 
profits of a business. 

The chief aim in business is profit making. Profits 
depend upon careful buying, low costs, and good selling. 
Carelessness or bad judgment in one is suffi- o n- 

, , T . •' ^ * , . ., Selling an 

cient to enmmate profits and to cause failure, important 
The existence of every business enterprise factor in 
depends upon the ability of the management ^"^^°^^^- 
to dispose of its goods at a greater price than the total 
outlay or expenses. Selling is therefore an important 
factor in every business. Too great emphasis cannot 



64 ECONOMICS OF EFFICIENCY 

be placed upon its importance, for upon it depends not 
only profits, but the very existence of an enterprise. 

To obtain the greatest efficiency in the selHng of goods 
and in the selling force, is an important problem for 
Reqtiisite every management. Value and service are 
for ef- the bases of satisfaction, which is a valuable 

ficiency^in asset in obtaining and in holding customers, 
°^" In selling, more depends, in the majority of 

cases, upon the men than upon the goods. The selec- 
tion of salesmen should be careful, deliberate, and not 
hasty. Careful selection should be followed by effi- 
cient training in the fundamental principles of sales- 
manship. A capable, efficient selling force is the aim 
of every business management, and makes for efficiency 
and for an increase in profits. 

Advertising has passed from a speculative stage to 
where it is a necessity. It is difficult to find a business 
Advertising; enterprise which does not advertise in some 
its purpose form. Advertising may be good or bad. Bad 
and aim. advertising is simply a waste of money, while 
good is one of the most potent factors in business. 
Thousands of dollars are wasted annually in poor ad- 
vertising. Advertising is a necessity in every busi- 
ness, yet it is a branch of business where great wastes 
exist, and where there is a great need for increasing 
efficiency. Advertising is an important task for every 
management, and by careful attention and study, 
greater results may be obtained. The purpose of ad- 
vertising is to sell goods, and the aim is to sell the great- 
est amount of goods with the least expenditure in ad- 
Requisites vertising. A management should place its ad- 
for good vertising in charge of a competent man, who 
advertising. gjiQ^i^i strive to increase the efficiency of adver- 
tising by obtaining greater results from the money ex- 
pended for the purpose. Poor selection of mediums 



MANAGEMENT AND THE PLANT 65 

and poor copies are sources of wastes, and represent 
large losses. Too great emphasis cannot be placed 
upon the necessity and the advisability of increasing 
returns from advertising through the choice of proper 
mediums and the writing of good copies. Good me- 
diums and good copies sell goods, and are the requisites 
for the efficiency which every management should strive 
for in advertising. 

Credit has an important bearing upon every phase 
of industrial activity. The granting of too Hberal 
credit has been, in the past, the cause of many credit ■ its 
failures, and to-day is too freely practiced, place in 
The lowering of margins of profit demands a ^"smess. 
careful study of credit and the possibiHty of eliminating 
losses by discrimination in its use. Recent years have 
introduced many changes in credit-giving, and the re- 
sult has been the working, through the ehmination of 
losses, toward greater business stability. Discrimination 
in credit giving is an important business factor, and is 
one which, if properly exercised, often brings success in 
place of failure. The granting of credit demands not 
only a thorough knowledge of character, but ability to 
judge capacity, and the necessity of capital. No branch 
of a business requires greater shrewdness and has a 
more important bearing upon losses and efficiency than 
wisdom in granting credit. 

QUESTIONS 

1. What is business organization? How may it be attained ? 

2. Give the relation between system and successful business 
management. State the advantages of system. 

3. What is coordination ? How is it ascertained ? 

4. What are the advantages of a good cost system? What 
precautions should be taken in its installation ? 

5. Mention the different factors which should be considered 
in plant location. 



66 ECONOMICS OF EFFICIENCY 

6. What methods should be adopted to assure most efficient 
tools, machines, and methods ? 

7. What losses may result from not paying heed to quality? 
Where in production should quality be considered ? 

8. Mention the requisites for a good storeroom. What is the 
importance of system in its arrangement ? 

9. What losses arise from lax shipping methods ? Outline a 
system for a shipping department. 

10. Outline a plan for a good inventory system. Why is inven- 
tory a necessity in business ? 

11. Why is standardization one of the basic structures of effi- 
ciency ? 

12. What is the relation between buying and business success? 
What precautions should be taken in buying ? 

13. Why is selling an important factor in business? What are 
the requisites for efficiency in selling ? 

14. Why is advertising a necessity in business ? What are the 
essentials for efficient advertising ? 

15. What are the fundamentals of credit? 



REFERENCES 

Books 

N. A. Brisco, "Economics of Business," Chs. IV- VII; S. H. 
Bunnell, "Cost Keeping for Manufacturing Plants," Chs. IV, 
XII, XIV, XVI; The Business Man's Library, Vol. VI, "Organ- 
izing a Factory"; C. U. Carpenter, "Profit Making in Shop and 
Factory Management," Chs. II, III, V, XII ; A. H. Church, "The 
Proper Distribution of Expense Burden"; C. Day, "Industrial 
Plants," Chs. I-V ; T. A. DeWeese, "The Principles of Practical 
Publicity"; H. Diemer, "Factory Organization and Administra- 
tion," Chs. II, III; J. C. Duncan, "The Principles of Industrial 
Management," Chs. Ill, IV, XVII ; W. D. Ennis, "Works Manage- 
ment," Ch. X; H. A. Evans, "Cost Keeping and Scientific 
Management," Chs. I- VIII ; B. A. Franklin, "Cost Reports for 
Executives," Chs. I, VIII; L. Galloway, "Organization and 
Management," Part I, Chs. VIII, IX, X, XI, Part II, Chs. I, II, 
V; C.X)..Hine, "Modern Organization," Ch. VIII ; E, J),. Jones,, 
"Business Administration "; W. Kent, "Investigating an Indus- 
try," Ch. Ill; D. S. Kimball, "Principles of Industrial Organiza- 
tion," Chs. VII, IX, XII, XIII ; S. Kirschbaum, "Business Organ- 



MANAGEMENT AND THE PLANT 67 

Jzatiqn and Administration," Chs. I-XI; C. E. Knoeppel, "Maxi- 
mum Production," Chs. II, VI ; Library of Business Practice, 
Vol. I, Part I ; Library of Business Practice, Vol. X ; J. Lee Nichol- 
son, "Nicholson on Factory Organization and Costs," Chs. I, III, 
IV, V; C. C. Parsons, "Business Administration," Chs. II, III; 
W. C. Redfield, "The New Industrial Day," Chs. IV, V; R. Robb,^ 
"Lectures on_Organization," pp. 47-68; W. G. Rose, "Success in 
Business," Part III; B. R. Vardaman, "The Master Salesman"; 
J. R. Wildman, "Cost Accounting" ; J. Zimmerman, "Credits and 
Collections." 

Articles 

O. M. Becker, "Building a Factory," System, Vol. 10, pp. 239- 
250 ; B. Buxbaum, " Shop Organization and Arrangement," Ameri- 
can Machinist, Vol. 35, pp. 535-539; J. Calder, " The Productive 
Department," The Efficiency Society, Transactions, Vol. I, pp. 55- 
171 ; C. U. Carpenter, "The Organization," Southern Machinery, 
Vol. 28, pp. 204-206; J. H. Carter, "The Relation of the General 
Manager to the Men," The Efficiency Society, Transactions, Vol. I, 
pp. 243-246; A. H. Church, "What to Record?" Engineering 
Magazine, Vol. 45, pp. 166-173; H- Emerson, "The Creation of 
Organization with Special Reference to Personnel," Southern 
Machinery, Vol. 29, pp. 1 59-161 ; B. A. Franklin, "A Problem of 
Quality of Workmanship," Engineering Magazine, Vol. 46, pp. 201- 
206 ; H. L. Gantt, "The Basis of Proper Management," American 
Machinist, Vol. 35, pp. 841-842; C. W. Hoyt, "Scientific Sales 
Methods," Greater Efficiency, Vol. 3, pp. 43-50; W. H. IngersoU, 
"Advertising," The Efficiency Society, Transactions, Vol. I, 
pp. 131-142 ; Wm. Kent, "The Attitude of the General Manager," 
Greater Efficiency, Vol. 3, pp. 33-41 ; W. B. Laine, "Arrangement 
and Operation of Storerooms," Industrial Engineering, Vol. 14, 
pp. 45-48; M. W. Mix, "Administration Departments," The 
Efiiciency Society, Transactions, Vol. I, pp. 109-118; C. J. 
Morrison, "What Effective Organization Means," American 
Machinist, Vol. 35, pp. 784-786; A. H. Morton, "The Layout, 
Design, and Equipment of Industrial Works," Industrial Engi- 
neering, Vol. 13, pp. 289-292; B. Orenstein, "The Organization 
of Large Commercial and Industrial Establishments," Engineer- 
ing Magazine, Vol. 44, pp. 588-596 ; E. C. Peck, " Systematic versus 
Scientific Management," Iron Age, Vol. 88, pp. 364-365 ; E. E. 
Pratt, "A New Industrial Democracy," Annals of American 
Academy of Political and Social Science, Vol. 44, pp. 28-38 ; H. F. 
Stimpson, "Manager and Scientist," Gassier, Vol. 41, pp. 319-325 ; 



68 ECONOMICS OF EFFICIENCY 

H. F. Stimpson, "The General Manager," The Efficiency Society, 
Transactions, Vol. I, pp. 231-236; J. F. Stromback, "Packing 
to Save Freight," System, Vol. 23, pp. 98-105; H. Tipper, "Effi- 
ciency Advertising," Greater Efficiency, Vol. 3, pp. 33-41 ; F. 
Walker, "Scientific Management Applied to Commercial Enter- 
prises," Journal of Political Economy, Vol. 21, pp. 388-399 ; E. M. 
WooUey, "The New Game of Business Management," World To- 
day, Vol. 21, pp. 1756-1762. 



CHAPTER IV 

Management and Labor 

From the introduction of the factory system until 
near the close of the last century, machinery and ma- 
terials were carefully studied to increase out- The im- 
put, but labor passed unnoticed. It is only portance of 
recently that employers recognized the im- factor^^y 
portance of the human factor in the making recently 
and in the marketing of goods. The men recognized, 
whose heads and hands perform the labor in our in- 
dustrial system are the chief factors of efficiency and 
success. The study of the workman in order to under- 
stand the various elements that affect his working 
power is an important and serious problem for every 
management. The management should deal with the 
worker as he is, and should reahze that deahng with 
theories and ideals can only result in inefficiency. An 
attendant should thoroughly know his machine to get 
the best results from its working. This has been rec- 
ognized since the introduction of machinery, but the 
management has not fully grasped the necessity of under- 
standing and knowing workmen in order that the best 
results may be obtained from the efforts that they put 
forth. 

It is surprising how long ignorance governed the 
relation between employers and employees, poj-meriy no 
Business men paid close attention to ma- thought 
chines and equipment, but when it came to gi^en to the 
the human heads and hands which made the ^^^°^ ***^*°'^' 
foregoing productive, Httle or no thought was given. 

69 



70 ECONOMICS OF EFFICIENCY 

No attempt was made to study the demands of work 
in order to obtain men fitted for its performance. The 
employer did not realize that health is a prime requisite 
for good work. No attempt was made to study the 
working force, and to find the environments and the 
conditions of work most conducive to health and work. 
No efforts were made to study methods of performance 
of work in order to ascertain best methods, to train 
workers in best methods, and to give proper induce- 
ments, so that work would be performed according to 
standard methods, and as nearly as possible in standard 
time. Little thought was given to cooperation, loyalty, 
and enthusiasm, three prerequisites for efficiency. In 
obtaining efficiency in any business enterprise, the most 
serious problem for any management to solve is the 
human. The human worker should be studied as care- 
fully as a complicated machine in order to ascertain 
conditions of work, environments, and methods of work 
most conducive to efficiency. 

The cooperation of employees is an absolute essential 
for efficient work, for without it efficiency is impossible. 
Coo era- Cooperation, or the act of working together 
tion ; a for a common purpose, is a basis of our modern 
requisite for industrial development. Hearty cooperation 

ciency. between the management and the employees is 
the main strength of every business enterprise, and in- 
creases the efficiency of both capital and labor. To 
enhst the mutual interest and the hearty support of 
the worker is one of the most important tasks of the 
management, and success frequently hinges upon its 
solution. To obtain their cooperation, men should be 
given a square deal, proper treatment, and a just re- 
ward for services. They should have some share in 
devising methods and plans, be made to feel that they 
are integral parts of an organization, consulted con- 



MANAGEMENT AND LABOR 71 

cerning difficulties, and encouraged to suggest ways 
of overcoming them. Working together with the in- 
terest of the enterprise at heart is the proper spirit of 
workers, and should be sought by every management. 
Cooperation has two sides, but the management fre- 
quently sees but one. It beheves that workers should 
cooperate to produce efficient results, but is bHnd to 
the fact that it should cooperate with the men to as- 
sist them to obtain a higher wage. True cooperation 
cannot exist without mutual benefits. Management 
and workers should each obtain what they are striving 
for : the management, low costs ; the workers, higher 
wages. In every form of business, true cooperation is 
more than a theory ; it is a necessity, and its impor- 
tance is gradually being impressed upon every manage- 
ment. 

Personality is an important factor in successful busi- 
ness, and is the element which makes effective organ- 
ization possible. PersonaKty is the strongest Personality; 
bond between men and management, the its im- 
foundation of confidence, the basis of per- po'^"^'^®- 
manent growth, and the living spirit of an organization. 
Dominating every business enterprise is a controlHng 
force, a "man behind" whose personality stimulates 
into action and guides the whole working force. Such 
a man should have character and strength, combined 
with kindliness and good wishes towards his men. He 
should always keep in touch with his men, and be ever 
ready to discuss any differences which may arise. Im- 
partiaHty in deahng with men is a virtue. Nothing 
fosters discontent, creates friction, and throws the 
whole working force into confusion more quickly than 
favoritism. Angry words, harshness, and injustice 
destroy enthusiasm, interest, and loyalty, and have no 
place in any business aiming at increasing efficiency. 



72 ECONOMICS OF EFFICIENCY 

The attitude which men have towards a business is 
governed almost entirely by their feeHngs toward the 
Ri hts of in3,n who directs them from day to day. It 
workers should not be forgotten that men are not bits 
should be of machinery, but men, and as such possess 
respec e . QQYtsiijj rights which should be respected. 
Recognition of the rights of workers and the making 
them feel that they are integral parts of an organization 
prevent friction and work toward efficiency. A meas- 
ure of efficiency is the extent to which the cooperation 
and the enthusiasm of the working force is sustained 
throughout an organization. The success of an organ- 
ization depends largely upon the choice of the proper 
head, a man who has character and strength to main- 
tain the personality of the organization. Many busi- 
ness enterprises fail through having the personality of 
the organization destroyed by a weak head. It matters 
not the kind of business undertaking : success depends, 
in a great measure, upon the proper relationship exist- 
ing between the management and the workers. 

There is a moral obligation due the management from 
every employee to give his best mental as well as his 
Duty of ^^^^ physical efforts. This service is not fully 
employees performed unless the men become interested 
to em- and enthusiastic in their work, and work with 

p oyers. their whole heart for the success and the wel- 
fare of the business. To obtain and to preserve this 
attitude of employees toward management and work 
should be an aim of every management. The manage- 
ment should make the employees feel that they have 
a stake in the success of the business, and that the man- 
agement has an interest in their welfare. Then the 
men will feel that they are a part of the business, and 
not Hke a cog in one large wheel. Each will work for 
the other's welfare, and all for greater efficiency and 
for the success of the business enterprise. 



MANAGEMENT AND LABOR 73 

The efficiency of workers is an important source of 
profits. Nothing affects efficiency more strongly than 
the interest which each worker takes in his Enthusi- ■ 
work. The aim of every management should asm ; its 
be to increase not only this interest, but loyalty, ^poi'tance. 
Wherever there is a lack of interest and loyalty, there 
is no enthusiasm, and without enthusiasm efficiency is 
impossible. Cooperation and loyalty should be whole- 
hearted, and then we have enthusiasm. Enthusiasm 
once aroused needs only direction to turn it into suc- 
cess. Efficiency is largely a matter of cooperation, 
loyalty, and enthusiasm on the part of the working 
force. How to treat employees so as to obtain their 
cooperation and to arouse their interest, loyalty, and 
enthusiasm is one of the most difficult problems which 
confronts every management, and its successful solu- 
tion paves the way for increased efficiency. 

The presence of loyalty in any business is an important 
factor working towards greater efficiency. The amount 
of work which any person may do is subject to Loyalty a 
many various conditions. Intellect, feeling, requisite for 
and will should work together in order to ob- efficiency, 
tain the best results. Where there is no feeHng or heart 
in the work, a serious handicap to good work exists, 
even if the intellect and the will be strained to the ut- 
most. The worker who is not loyal to the management 
can render only half-hearted service, even though he 
strives to his utmost. The management which secures 
the loyalty of its working force has a valuable factor 
working towards efficiency. 

Most men are capable of following a worthy leader; 
few are ever zealots for the sake of a cause, a principle, 
or a corporation. All these are too abstract to win the 
affection of the average man. It is the individual, the 
concrete personality who attracts human interest. The 



74 ECONOMICS OF EFFICIENCY 

worker is loyal to his immediate foreman, or to the head 
of a business enterprise, rather than to the business it- 
self. Loyalty to a business enterprise de- 
bushiess° velops from loyalty to those performing 
develops managerial functions. A first essential is to 
from loyalty yAslcg men of character in all executive offices, 

to bosses. 

men who are leaders, and who inspire men, 
and win their loyal support. If such is the case, loyalty 
to the business is assured. Loyalty is reciprocal. If a 
worker feels that he has no assurance of fair treatment 
from the management, it is impossible to arouse interest 
and loyalty to the management. A square deal is one 
indispensable basis of loyalty, cooperation, and en- 
thusiasm. 

Human sympathy is an important factor in every 
business enterprise. If the executive head of an or- 
The impor- ganization knows that the directors appreciate 
tance of his efforts and are ever ready to back him in 
sympathy, ^^y. Qj-jg^g^ j^jg enthusiasm and energy for the 
success of the enterprise never flag. If foremen and 
superintendents know that the manager is watching 
their efforts with interest and regard, approving, sup- 
porting, and sparing them wherever possible, they will 
place their entire mind, energy, heart, and enthusiasm 
in their work in order to obtain the greatest possible 
results. If a worker knows that his superintendent is 
interested in him, and that he knows the service being 
rendered, he will put his heart into his work, and have 
an interest in the success of the business. To secure 
efficiency, sympathy of the man above with the man 
below is essential and necessary. 

Incentive and efficiency are closely related. It must 
be granted that men will not increase their efficiency 
without some incentive. Workers cannot be expected 
to use their best ability unless they feel that they are 



MANAGEMENT AND LABOR 75 

getting good returns for it. The management should 
give its workers some incentive, hope of reward, hope 
of promotion, better working conditions, and, incentive is 
better still, if a union of all these elements, necessary 
Sometimes a worker feels that it is to his ^°^ greater 
interest to give just as Httle work as possible 
for the wages which he is receiving, and to make the 
management feel that he is giving a full day's work. 
If in addition to compensation there is the extra in- 
centive of proper working conditions, benefits, insur- 
ance, etc., the employer possesses means that hold 
the workers in an organization and increase their 
efficiency. 

The handling of men is a problem which tests the 
ability of the management, and is one which is a factor 
in increasing the efficiency of a business enter- Methods of 
prise. Two methods are in practice for han- handling 
dhng men, one, typical of the last century, is °^®°- 
driving, while the other, needed to increase efficiency, 
is leading. The ignorant workman may be driven to 
his task, but with the intelligent or skilled . . 
workman, driving is a failure. Driving pro- 
duces discontent, fosters antagonism, and prevents 
loyalty and enthusiasm. Skill rather than brawn and 
muscle is needed, and to obtain skilled men with brains, 
and to get them to do their best work, they should not 
be treated Hke bits of machinery, or driven Hke dumb 
brutes, but led through their own self-interest. To 
understand the worker is an important problem, and 
one which demands much study from the management. 
The manager should be a close student of human 
nature, and should know his workers as they are, and 
not as they are supposed to be. Efficiency 
requires the cooperation of employers and 
employees, and this demands that employees be led 



76 ECONOMICS OF EFFICIENCY 

through self-interest. The question of leading, through 
the arousing of self-interest, is an important problem 
of the future, and its successful solution insures enthu- 
siasm, cooperation, and efficiency, the goal of industrial 
activity. 

The industrial struggle is one for profits, and the 
management which can produce with the greatest effi- 
Permanence ciency wins. Employers have recently 
in the work- learned that an important factor in lower- 
ing force. jj^g costs is permanence in the laboring force. 
Nothing so works against efficiency as a continuous 
change in the working force. Workers, when they 
know that they are likely to be discharged any moment, 
do not have the interests of the business at heart, and 
do not give their best service. Experimenting with 
men is costly, and the less the management is com- 
pelled to experiment, the greater are the possibilities of 
increasing efficiency. During the nineteenth century, 
machines were carefully nurtured and protected, but 
little attention was paid to keeping men in a business. 
The employer failed to realize the loss resulting from 
constant hiring and dismissing. 

The desirabihty of keeping men in an organization, 
is most forcibly expressed in the different pension sys- 
Methods of ^^^^^ ^^ ^^^ railroads and industrial enterprises, 
holding men They Support a pension fund as a pure busi- 
in an or- ^gss proposition. The aim is to hold out a re- 
ganiza ion. ^^^j.^ ^]^2,t appeals to the worker with greater 
force than some future inducement to go elsewhere. 
From the management's standpoint, the pension is the 
premium that it is wilHng to pay for continuity of serv- 
ice, and the increased efficiency which it affords. Effi- 
ciency demands not only a high-grade and efficient work- 
ing force, but one where the fewest changes take place. 
Many influences may be developed to hold workers in an 



MANAGEMENT AND LABOR 77 

organization. Money return in some form is perhaps 
the strongest. The worker who is assured that the 
longer he stays with an organization, the larger will be 
his income, and that extra effort and efficiency will bring 
greater reward, has the strongest kind of an inducement 
to remain where he is. Interest in work, personal con- 
tact with superiors, assured promotion, good working 
conditions, fair and just remuneration are the strongest 
inducements to hold men. 

An important factor working for efficiency is pro- 
motion from the ranks. Hope for the future is the 
chief incentive for giving best efforts, and a promotion 
hope which appeals most strongly, and gives from the 
loyalty and enthusiasm is advancement, ranks; its 

T-i Till • • r importance. 

Every manager should make provision tor 
filHng any vacancy which occurs from his own working 
force, and the workers should be given to understand 
that vacancies will be filled from their numbers. Pro- 
motion should not be based upon seniority, but wholly 
upon abihty. Preference to seniority is only justified 
when the senior in service is of equal abihty with others 
quaHfied for promotion to a vacancy. Promotion from 
the ranks has been adopted by many railroads and in- 
dustrial enterprises. Marshall Field & Co. have only 
two managers who are not promoted from the ranks. 
The Pennsylvania Railroad Company rigidly follows 
the pohcy, and one hundred and fifty of its one hundred 
and sixty chief officials started in lower positions. The 
assurance that promotion will be made from the ranks 
fosters ambition, gives hope of advancement, and greater 
satisfaction and contentment with the present position. 
It encourages employees in their work and arouses 
loyalty and cooperation. The importance of the pohcy 
is daily becoming more recognized, and its adoption 
is spreading to all fields of industrial activity. 



78 ECONOMICS OF EFFICIENCY 

A worker to do his best work should have his mind 
upon what he is doing. This freedom of mind arises 
Content- largely from contentment and has a great in- 
ment; its fluence upon the quality of work as well as 
importance. ^pQj^ ^]^g output. A Contented worker has a 
positive money value. Contentment binds employers 
and employees closely together and leads to their co- 
operation for the greater efhciency of an enterprise. 
Working amidst gloomy and dismal surroundings, with 
improper equipment, in fear of losing his position, at 
unfair wages, or under constant nagging by a rough and 
surly boss causes a man to have his thoughts upon any- 
thing except his work. The worst frame of mind for 
good work is one of continual brooding over being under- 
paid. Yet in how many enterprises do we find one or 
more of these conditions prevailing ? How many have 
failed as a result of their presence ? Many manufac- 
turers have well-equipped factories, but there is lacking 
the contented working force. They have yet to learn 
the value of contentment. Every effort should be 
made to have working conditions, environments of 
workers while at work and at home, and equipment the 
most conducive to health and to work, and with a fair 
and just remuneration a contented mind follows. Many 
employers have introduced welfare movements for the 
benefit of their employees. These are business invest- 
ments, and the contented mind obtained more than re- 
pays the outlay in quahty of work and in increase of 
output. 

Tardiness in attendance is a form of inefificiency which 
every management should strive to reduce to a mini- 
Tardiness mum. Efficiency demands not only faithful- 
and inef- ness in work, but regularity and punctuality 
ficiency. ^^ attendance. Experience has proven that 
tardiness cannot be overlooked, and the best way to 



MANAGEMENT AND LABOR 79 

deal with it is to make it unprofitable. Fines are the 
usual means of enforcing promptness. Not paying for 
the time lost, the loss of a day's pay if occurring a cer- 
tain number of times, suspension, and absolute discharge 
are among the methods found in practice for the punish- 
ment of tardiness. Punishment in some form is ab- 
solutely necessary in deaHng with certain classes of 
men. No one method can be given as practicable and 
workable in all establishments. One which gives satis- 
faction in one business enterprise might be a failure 
and the cause of driving good workers away in another. 
The management should remember that plant organiza- 
tion, working conditions, the personnel and the character 
of employees are never the same in two places, jj/jgthods 
In deciding upon a method for deahng with for dealing 
tardiness, due consideration should be given with tardi- 
to the character of the workers, whether men 
or women, skilled or unskilled, salaried or working by 
the piece. If fines are imposed, the management should 
make it clear to the workers that the purpose of the 
fines is punishment, and that they are not a money- 
making proposition. The only safe way to deal with 
fines collected is to devote them to some welfare move- 
ment for the workers. If fines are kept by the man- 
agement, it inevitably leads to antagonism, and works 
against loyalty and enthusiasm. 

Every management finds it imperative to adopt some 
method of ascertaining whether or not a worker is punc- 
tual in attendance. The time clock is the Punctuality, 
favorite method, but metal or wooden tags. How ascer- 
timekeepers, individual tickets punched at *^'°^<i- 
entrance, the matter left to the direct supervision of 
superintendents or foremen, and daily work cards are 
among other methods found in practice. Many claim 
that a check upon the time that a worker appears at 



8o ECONOMICS OF EFFICIENCY 

work is not necessary and only antagonizes him. Under 
the present industrial system, some method is absolutely 
necessary, and if any trouble arises, it is usually on ac- 
count of poor judgment exercised in fixing the punish- 
ment, or in the use of fines collected. 

Many managements find it profitable to encourage 
promptness by a system of rewards. An effective 
Methods method is to take promptness into considera- 
for en- tion in increase of pay, or in advancement, 

couraging Some give cash premiums and prizes at the 
promp ness. ^^^ ^£ ^^^^ ^^^^ ^^ ^jj ^-^^ have not been 

tardy, while some base vacations on the timekeeper's 
record, and take account of promptness in awarding time 
of vacation with full pay. Those who have adopted the 
award system find it necessary to have some system for 
punishing tardiness. If a worker were tardy once or twice, 
with no chance of obtaining a reward, there is a tendency 
to be careless about attendance in the future. 

Irregularity in attendance has a direct bearing upon 
efficiency, and is a serious problem confronting every 

management. The chief cause of irregularity 
it" causes*^' ^^ sickness, and the question to be answered is, 

Who is responsible? The management may 
be the cause in not having proper working conditions; 
if so, the worker is not to blame, and the cause should 
at once be remedied. On the part of the worker, the 
cause may be lack of nourishment, unsanitary home 
surroundings, careless exposure, or intemperance. The 
management should insist upon proper nourishment 
and proper sanitary home surroundings. It should 
take all precautions to have working conditions and 
surroundings of workers while at work the most con- 
ducive to health. Careless exposure should be warned 
against, and intemperance should not be tolerated. 
Reasons for absence from work are many, and each in- 



MANAGEMENT AND LABOR 8i 

dividual case should be dealt with separately. The 
method of treatment should vary with cases, and punish- 
ment is only advisable where the cause is due 
to negligence, carelessness, or intemperance on treatment' 
the part of the worker. None of these should 
be tolerated, and dismissal should be the punishment for 
the second or third offense. A great safeguard against 
irregularity is a healthy working force, working under 
sanitary and wholesome conditions. 

It has been said that 95 per cent of the workers of 
this country are doing less than 60 per cent of what 
they might do without physical injury or over- wastes 
exertion. This statement is perhaps exag- from men 
gerated, but it is nevertheless true, that a soidiermg. 
great waste arises from men loafing, soldiering, or idling 
away their time. Efhciency demands that this waste 
be reduced to a minimum, and it is an important prob- 
lem confronting the management to devise successful 
methods of doing so. The average worker is naturally 
incHned to take things easy, and to do the least amount 
of work necessary to keep from being discharged. This 
is one of the evils arising from day wages. When all 
are paid the same wages, the more efficient worker 
slackens his pace to that of the lazy fellow, because 
why should he do more when he receives the same pay ? 

A great part of soldiering is done by men with the 
dehberate object of keeping their employers in ignorance 
of how fast work may be done. Many de- soldiering 
liberately study how slowly they may go, and is often 
still convince their employers that they are <ieUberate. 
going at a rapid pace. The fear of making a record 
that will be used as a basis of future piece rate causes 
men to soldier as much as they dare. They look upon 
extra effort to earn more wages as leading to a cut in 
piece rate. As one of the main causes of soldiering, the 



82 ECONOMICS OF EFFICIENCY 

prevailing fallacious belief among laboring men that 
the curtailing of output gives more employment should 
not be overlooked. Frequently, men do the best they 
can under discouraging conditions of work, and should 
not be criticized for not doing more. Soldiering is 
often deliberate, as wasting time to make a job last, 
so that it will not be necessary to change jobs at an in- 
convenient time. Men are frequently careless about 
being late in starting work, and in stopping a few 
minutes before closing. 

Soldiering or loafing, in whatever form it is found, 
works against efficiency, and its reduction should demand 
How to the careful attention of every manage- 

eiiminate mcnt. Its elimination demands the coopera- 
soidienng. ^^^^ q£ management and worker. The man- 
agement on its part should remove all causes for waste 
of time from inconvenient plant equipment. It should 
pay its workers wherever possible by piece rate, and in 
the determination of the rate, it should take special care 
that the rate is based upon productivity, and that 
workers receive a just and fair reward for their efforts. 
There is no more effective way of reducing idleness than 
to make idlers losers. Workers on their part should be 
prompt in starting work, faithful in attending machinery, 
and in keeping machines running at full capacity while at 
work, sincere in putting their whole thought into what 
they are doing, enthusiastic and interested in their 
work, and loyal in their cooperation with the manage- 
ment for the increasing of efficiency, and for the suc- 
cess of the business. 

All human beings possess physical, mental, and moral 
qualities. These are necessary to a greater or less de- 
gree in all classes of work. With unskilled labor and 
positions of little importance, the physical is the most 
important, with the skilled trades and positions of in- 



MANAGEMENT AND LABOR 83 

creasing responsibility, the mental grows in importance, 
and with all kinds of work, the moral is absolutely essen- 
tial. It matters not how healthy a man is, 
or what abihty he has, if he is dissipated, he o^physlcaf 
is physically and morally unfit to be a mem- mental and 
ber of a high-grade organization. Dissipa- ^o^^ quaii- 
tion gradually affects his physical and mental workers, 
powers, weakens his sense of responsibility, 
increases irregularity in attendance and causes careless- 
ness in work. The dissipated employee soon becomes a 
derehct upon an organization, rather than an integral 
part of it, and his services must soon be dispensed with, 
in order to avoid friction and loss. The members of a 
high-grade organization should be healthy, strong, and 
vigorous, possess the required ability for the work, and 
have a high sense of moral duty. 

Every worker should be responsible to some higher 
authority, and there never should be any doubt as to 
that authority. Authority should be so es- Authority 
tabHshed that minor breaches may be ignored clearly 
and pass unnoticed, but when the time comes <^^^e<i- 
for action, and when all consideration has been given, 
the management should enforce its decision to the 
letter and without mercy. Care should always be 
exercised in giving orders only through the immediate 
boss or superintendent. The giving of orders by a 
superior official to men who are held responsible to a 
lower official shows bad judgment, and has a tendency 
to lower the respect of the men for the official to whom 
they are responsible. It should not be forgotten that 
the practice of showing authority for authority's sake 
is bad, and breeds dissatisfaction and friction. 

Some method of discipHne is a necessity in every 
business enterprise. It is important that the man- 
agement should have a carefully considered method of 



84 ECONOMICS OF EFFICIENCY 

disciplining its laboring force. The method should be 
sufficiently broad, so as to cover the great variety of 
Discipline; characters and dispositions found in every 
its im- working force. Some workers are so conscien- 

portance. tious and dcsirous of doing right that the 
sHghtest word of correction is all that is required. There 
are others who mistake kindly words for timidity and 
weakness. With these, talk, either mild or severe, has 
little or no effect, unless they believe that something 
more severe and disagreeable will follow. An important 
question for the management to decide is what will be 
the most effective method of discipline, and give the 
least interference with the harmonious working of the 
laboring force. It should be emphasized that with new 
workers a beginning should be made with kind words, 
and these repeated if necessary several times, until it 
is evident that kindly treatment does not produce the 
desired effect, and then more drastic methods should be 
used. 

There are many methods used in enforcing discipline, 
— kind words and suggestions, fining, laying off for a 
Methods of period of time, lowering wages, giving a series 
enforcing of bad marks, and when they amount to a 
discipline, certain number per week or month, fining, 
laying ofi, or lowering wages, and discharge. Discharge 
is of course the most effective, but this should be used 
only in those cases which are absolutely hopeless of 
correction. Between the first and the last, it is always 
advisable to have many remedies, each more severe 
than the preceding. Laying ofi and lowering wages 
are too severe for ordinary breaches of discipline, and a 
management will hesitate to enforce them. Men will 
soon discover this, and many will take advantage of it, 
and keep most of the time close to the limit. Again, 
these methods are so drastic that if regularly enforced. 



MANAGEMENT AND LABOR 85 

they arouse antagonism on the part of the workers, and 
prevent interest and enthusiasm so essential for increas- 
ing the efficiency of a working force. In laying men 
off, a management usually suffers more than the men, 
through having work delayed, and putting new men in 
their places. Either of the methods causes more or 
less friction, and interferes with the smooth working 
of a working force. 

Giving bad marks is objectionable, as many will take 
advantage of the system, and deHberately keep close 
to the maximum of bad marks. The best Fining tj^e 
method is that of fining. If appHed with best method 
judgment, it is to be preferred to the others, ^of fisci- 
and gives the most satisfactory results. Its p^^^^- 
success depends upon impartiahty, and upon sound 
judgment in levying the fines, and in using those col- 
lected to promote some welfare work for the men. Under 
no consideration should the management retain the 
fines collected, because, if so, the men will beheve that 
the purpose of fining is to make money. This arouses 
the workers against the management, and prevents 
their hearty cooperation in their work. Exceptional 
cases may arise where fines will not prove severe enough, 
then the more drastic method of lowering wages or lay- 
ing men off should be used. 

Those in supervising positions should always maintain 
their dignity. They should be able to control them- 
selves and give reprimands under the most Qualities 
trying circumstances, without losing their essential in 
temper. They should be firm, dignified, and superin- 
always ready to help, and to work with their 
men, as well as direct them. They should be approach- 
able, sympathetic, and mingle with their men, and take 
an interest in their welfare, but should not allow famil- 
iarity, because it breeds a feeling of disrespect towards 



86 ECONOMICS OF EFFICIENCY 

themselves. They should be entirely free from favorit- 
ism, and able to treat every case on its merits. Dis- 
cipline is then not difficult. In every business enter- 
prise, from the executive head down to the humblest 
worker, discipHne should be maintained. 

A close man-to-man relationship between employer 
and employee is priceless. It arouses interest, enthu- 
siasm, and loyalty, three necessary essentials 
tendents; fo^ efficiency. The management should be 
importance able to select the right foremen for the dif- 
seiection ferent places, — men who are not only best 
fitted for the positions, but who know how to 
arouse loyalty with resulting cooperation. It is said 
that Andrew Carnegie seldom made a mistake in pick- 
ing the right man for the right place, and his success 
is largely due to this ability. The selection of proper 
superintendents, men who know how to handle men, is 
of much more importance to-day than ever before, and 
continues to increase in importance as the business 
units grow in size, and the individual employee is further 
removed from the executive head of the business. Men 
who know how to get maximum results from machines 
are common, but men who know how to get cooperation, 
and the greatest efficiency from the human element, are 
rare. 

QUESTIONS 

1. What is cooperation and why is it a necessity for efficiency ? 

2. Why is personality a necessity for effective organization? 

3. What arouses enthusiasm ? Give its bearing upon efficiency. 

4. Give the source of loyalty and state its importance in a 
working force. 

5. Mention and give the importance of the various incentives 
to increase efforts. 

6. What is the relation between permanency in a working force 
and efficiency? Mention methods used to assure permanency. 

7. What is the importance of promotion from the ranks ? 



MANAGEMENT AND LABOR 87 

8. What bearing has contentment upon efi&cient work ? What 
causes a contented working force ? 

9. Mention methods of dealing with tardiness. What do you 
consider the best method, and why ? 

10. What are causes of irregularity ? How should it be treated ? 

11. What is soldiering? Give causes. How can it be elimi- 
nated ? 

12. Why should authority be clearly defined? 

13. Mention different methods of enforcing discipline. Which 
do you prefer and why ? 

14. What qualities are essential in superintendents? 

15. How may the proper relationship be maintained between 
superintendents and men ? 



REFERENCES 

Books 

N. A. Brisco, "Economics of Business," Ch. IX; The Business 
Man's Library, Vol. IX, "Personality in Business" ; E. Cadbury, 
"Experiments in Industrial Organization," Ch. Ill; C. U. Car- 
penter, "Profit Making in Shop and Factory Management," 
Ch. II; H. Diemer, "Factory Organization and Administration," 
Ch. XXV; H. A. Evans, "Cost Keeping and Scientific Manage- 
ment," Chs. IX, XI, XII; L. Galloway, "Organization and 
Management," Part II, Ch. VIII; J. Hartness, "The Human 
Factor in Works Management," Ch. V; W. C. Redfield, "The 
New Industrial Day," Chs. VI, VII, VIII, IX; W. G. Rose, 
" Success in Business," Part II ; The System Co., "How to Handle 
Workmen," Ch. V; W. D. Scott, "Increasing Human Efficiency 
in Business," Chs. II-VII ; J. W. Schulze, "The American Office," 
Chs. VII, VIII, X; F. E. Webner, "Factory Costs," Ch. II; 
H. A. Norman, "How to Get Workmen," Ch. VI. 

Articles 

H. W. Ambruster, "Getting Employees to Work on Time," 
System, Vol. 18, pp. 484-491; G. H. Barbour, "Personality in 
the Working Force," System, Vol. 12, pp. 112-116; O. M. Becker, 
"The Common Sense of the Management of Men," Engineering 
Magazine, Vol. 30, pp. 536-554; O. M. Becker, "What Can Be 



88 ECONOMICS OF EFFICIENCY 

Done with the Workers ? " Engineering Magazine, Vol. 30, pp. 823- 
849; O. M. Becker, "Restoring the Personal Touch," American 
Machinist, Vol. 35, pp. 393-395 ; J. Bismer, "The Driving Power 
of Enthusiasm," System, Vol. 20, pp. 252-261 ; S. H. Bunnell, 
"The Human Side of Business Organization," Iron Age, Vol. 89, 
p. 29; S. H. Bunnell, "Factory 'Red Tape' as a Life-Line," 
Iron Age, Vol. 91, pp. 586-587; J. F. Cairns, "Promotion of 
Employees," Gassier, Vol. 32, pp. 420-426; F. H. Colvin, "Per- 
sonality in Shop Management," American Machinist, Vol. 35, 
pp. 439-440 ; J. M. Dodge, "Living in Harmony with your Work- 
men," Industrial Engineering, Vol. 14, pp. 7-9 ; F. M. Feiker, 
"When Men Will Do Their Best," System, Vol. 20, pp. 60-66; 
L. H. Gulick, "The Human Element," The Efficiency Society 
Transactions, Vol. I, pp. 181-186; W. M. McFarland, "The Basic 
Cause of Increased Efficiency," Engineering Magazine, Vol. 36, 
pp. 329-335 ; M. W. Mix, "Human Element in Efficiency Work," 
Iron Age, Vol. 92, p. 753; C. D. Murphy, "Spur of Pay and 
Promotion," System, Vol. 23, pp. 562-570; C. C. Myers, "A 
Rational Treatment of Labor," Sibley Journal of Engineering, 
Vol. 21, pp. 214-217; W. Osborne, "What Makes a Shop Pleas- 
ant to Men?" American Machinist, Vol. 40, pp. 460-462; H. 
Robbins, "The Personal Factor in the Labor Problem," Atlantic 
Monthly, Vol. 99, pp. 729-736; L. H. Thompson, "The Spirit of 
Cooperation," System, Vol. 10, pp. 124-125; A. H. Thorpe, 
"Enthusiasm," Modern Methods, Vol. 20, pp. 832-833; A. M. 
Ward, " Personal Power in Business," System, Vol. 1 1 , pp. 340-344 ; 
"Do Men Like to Work?" Factory, Vol. 10, p. 435; "The 
Human Element," Machinery, Vol. 16, p. 33. 



CHAPTER V 

Methods 

During the past two decades, many changes have 
taken place in the attitude of business men toward 
problems that they face, and means that they Guesswork 
control. Increased competition cut the mar- and igno- 
gins of profit, and if American industries ^^^^^ ^^ 
were to continue to flourish and expand, "^^°®^ ■ 
methods must be devised for lowering the costs of pro- 
duction. The struggle for lower costs directed the at- 
tention of a few business men to a study of the internal 
workings of their enterprises. The discovery was soon 
made that almost the entire operations of their business 
undertakings were based on guesswork and ignorance, 
rather than knowledge. It was found that men in 
executive positions, as well as workers, had Perform- 
little knowledge of how best to perform opera- ance of 
tions, and what was most conducive to best '"°^^- 
performance. The business men were amazed at the 
great amount of work that was performed haphazard, and 
by guesswork. They were astonished at the waste which 
existed in their business enterprises through the presence 
of unscientific methods of doing work, and of conduct- 
ing enterprises. They realized the necessity of ascertain- 
ing knowledge of how best to work, and the saving, if 
similar tasks were performed, according to the best pos- 
sible methods, with the best possible equipment, and 
under conditions most conducive to work. 



90 ECONOMICS OF EFFICIENCY 

The methods found in the average business enterprise 
are not the result of carefully and properly conducted 
The old investigation, but are what are guessed to be 
method of best by the management and the workers. It 
doing work, jg seldom that in the same plant you find the 
same movements in the performance of similar tasks. 
The old way is to allow men to learn by observing others 
work. They are not taught what methods are best, 
but are left to choose their own. The goal is to reach 
the one result, the performance of the task, and 
effects ^^^^ worker is left to the choice of his own 

movements in the reaching of this goal. 
Habits are formed, and workers continue to perform 
their work with unnecessary and improper movements. 
Men when they are left to themselves to discover by 
observation methods of work do not discover the best 
methods of performance. The old way and the one 
that is in common practice is to put everything up to 
the worker. It frequently happens that a man work- 
ing as hard as he can, falls short of what could be done, 
on account of making unnecessary movements, and of 
employing inferior methods in his work. It is only 
during the last few years that a few progressive business 
men have realized that there are many opportunities 
for better ways of doing things, ways which bring greater 
efficiency and increased profits. The great need is to 
make all business men realize this necessity, and have 
work performed by properly directed energy and by 
scientifically discovered methods. 

Every operation in a business enterprise may be per- 
formed in a number of ways, and it is evident that all 
The one ^^^ iiot equally efficient. As a rule, many are 
best way of SO inefficient that if only a sHght investigation 
doing work, -^gj-g made, they would be at once discarded. 
There is one best way to do a piece of work, and that is 



METHODS 91 

what is needed in every business enterprise. Few- 
workers know the best way of doing a task, and few 
have the abihty to investigate different ^ot dis- 
methods and select the one which is best, covered by 
Not only the workers, but even the manage- '^°^^^^- 
ment cannot know at random, or guess, the best method of 
doing a piece of work. Again, workers in the past, and 
in the average plant of to-day, decide methods of per- 
forming work, and these become habits. They cHng 
tenaciously to their habits of work. Men usually refuse 
to be shown a better and easier way, declaring that their 
own is good enough for them. The old way of allowing 
workers to choose the methods of work which they are 
to use, should be discarded on account of its inefficiency, 
and there should be adopted and used in every plant, 
standard methods previously determined by the manage- 
ment. 

A management should decide what is the best method 
of doing work, and then introduce it in its plant. Mr. 
Taylor gives the key for performance of work Guesswork 
in stating that you should know exactly what precedent, ' 
you want men to do, and then see that they do ^°^ "^fse 
it in the best and cheapest way. The per- 
formance of work is usually based upon precedent and 
established usages. The discovery of the one best way 
demands the casting aside of guesswork, precedent, and 
usage. Knowledge is the one chief essential to best 
performance, and should be ascertained by the man- 
agement through experts. Thorough investigation 
should be made of the performance of work, and the 
best way ascertained. The best way is the one best 
with conditions existing in the particular plant where 
it is to be adopted. There should be a clear under- 
standing of what is to be done, and nothing left to guess. 
The one best method should be made standard, should 



92 ECONOMICS OF EFFICIENCY 

be the only one allowed, and should be constantly and 
consistently followed. 

The only way to determine the best method of per- 
formance of work is to ascertain it by scientific inves- 
^j^g tigation, because if it were not so ascertained, 

methods of differences of opinion would exist as to the 
the average best. The average worker who performs an 

worker • • • • • i i 

operation m a certam way imagmes that he 
knows all about the performance of the work, and scoffs 
at the intimation that there might possibly be a better 
and more efficient way of doing it. Let the average man- 
agement carefully analyze the methods used in its plant, 
and it will find that the great majority are inherited 
from the past, or slavishly adopted from observing 
others, and little knowledge exists as to whether they 
are the best for the performance ' of the work. With 
no uniformity of methods for performing similar tasks, 
and little or no knowledge as to what is the best method, 
there is no ground for forming any opinion as to the 
efficiency existing in a plant. 

Experience has proved that the average worker, 
skilled or unskilled, has Httle or no accurate knowledge 
A reason- of the amount of work that he can perform in 
able day's a given time, or of his efficiency. Neither the 
^o''^- worker nor the management in the average 

plant knows the best method of performance, or how 
much an individual at his chosen work can accom- 
pHsh. With no understanding as to best methods, how 
is it possible to obtain the greatest efficiency and 
best results with the least waste ? Not only the best 
methods, but what constitutes a reasonable day's work, 
can only be determined by scientific investigation and 
intelligent observation. 

Many business men, even to-day, believe that it is 
a waste of time to study theoretical principles under- 



METHODS 93 

lying business activities, and declare that scientific inves- 
tigation and methods have their place elsewhere than in 
business. They have yet to realize that no Theoretical 
operation is so simple that it does not in some principles 
way involve the appHcation of a theoretical underlying 

• • 1 -n " 4-u J J i-' business. 

prmciple. Busmess methods and practices are 
based upon theoretical principles. Business is gradually 
being reduced to a science, and business activities should 
be studied and scientifically investigated, as phenomena 
in the field of science. The sooner business men reahze 
that scientific investigation and research are as necessary 
in business as in the sciences, the greater will be the advance 
in efiiciency. They must realize that rightly 
applied theory goes hand in hand with practice, practice^*' 
The theoretical principle should be known, 
and its application should be the result of scientific in- 
vestigation and careful experimentation. If theory and 
practice appear to disagree, then theory or practice is 
wrong. The fault lies with the management in not 
knowing the underlying principle, or in not making a 
proper application of it. The man who looks upon 
theory as something abstract, and entirely foreign to 
business activities, merely declares his ignorance. Busi- 
ness men should become awakened to the fact that 
business is a science, and that successful business is 
based upon certain fundamental principles which under- 
lie business activities, irrespective of whether or not 
they are recognized by them. The application of scien- 
tific method to business activity is a necessity, and is a 
demand of efficiency. Its resulting influence in lower- 
ing expenses and increasing profits should be sufiicient 
inducement to win over the average business man to 
the necessity of scientific investigation in order to ob- 
tain scientific methods of performance of work, and their 
introduction and consistent following throughout a plant. 



94 ECONOMICS OF EFFICIENCY 

Motion and time studies are the scientific methods 
used to discover the best way to perform any operation. 
Scientific These studies provide the necessary informa- 
method to tion for ascertaining the most efficient way 
discover to perform a task. Every operation is divided 
way. j^^^ jj.^ elements or unit operations. Time 
study is the act of analyzing, recording, and synthesizing 
the time necessary to perform the elements of an opera- 
tion. There is no operation which is too 
simple or too complex to allow of this analy- 
sis, and which will not repay scientific study, to ascer- 
tain the best way of performance. Time study is made 
with a stop watch and a sheet of paper, upon which is 
noted observations. Motion study is the 
study" careful study and observation of the move- 

ments making up each element of an opera- 
tion in order to discover the unnecessary movements, 
and those which are absolutely necessary for the per- 
formance of the operation. After repeated observation 
and experimentation, a method is eventually obtained 
which requires the least energy and time. Thus the 
only way to determine the best way of doing an opera- 
tion is to analyze it into elementary operations, and 
determine separately the best way of doing each element. 
The time for doing an operation is then the sum of the 
different times that are taken for the performance of the 
different elements. This is not an easy task, and de- 
mands a trained mind and accurate observation. 

The ascertaining of the best way extends beyond the 
movements of performance, as it demands a careful in- 
Requisites vestigation into all conditions relating to the 
for standard performance. Those conditions which are 
methods. j^gg^. g^jted to the performance should be dis- 
covered, and all those which hinder a worker should be 
discarded. Machines, tools, equipment, and materials 



METHODS 95 

demand careful study and should be such as assist the 
worker as much as possible. Working conditions and 
environment should be made the most conducive to 
health, and to the efficient performance of work. Every 
condition in a plant should be made as favorable as 
possible for the performance of work. 

An important problem is finding the time to be al- 
lowed in the performance of an operation. In the 
time allowed, consideration should be given to jj^^ ^^ ^g_ 
first, the time actually spent at work, secondly, termine 
the time allowed for delays, and thirdly, the ti°^® ^°^ ^ 
time allowed to overcome fatigue. The time 
actually spent is the sum of the time spent upon the 
elements of an operation. This is determined by the 
expert investigating the operation, and extreme care 
should be taken in observation and in timing. There 
is usually more or less delay in the performance of work, 
and the allowance for delay should be made only after 
a thorough examination of a plant. As conditions vary 
in different plants, so will allowances, and no fixed allow- 
ance for delay can be made standard for all plants. 

A third element entering into time allowance is rest. 
Operations vary in their intensity, and in the amount 
of mental and physical efforts necessary for jj^^ ^^ ^g_ 
their performance. The object sought in certain time 
time and motion studies is not to find a time allowed for 
for the performance of a task that may be 
used to drive men, but to find the time and the methods 
of best performance that will enable men to continue 
their work from day to day without exhausting their 
strength, or impairing their health. It is time, as well as 
methods and conditions of work, which should 
be considered in order to ascertain the pre- o^rest^"^^ 
cautions which should be taken to prevent 
fatigue. Every operation should be given special 



96 ECONOMICS OF EFFICIENCY 

study in order to ascertain the amount of energy and 
the intensity, attention, and concentration of thought 
necessary for its performance. This varies with the 
character of the operation. Constant application should 
not be allowed to the point of fatigue, so rest periods are 
absolutely necessary with many kinds of work. Their 
length and number depend upon the character of the 
operation. If necessary, time in every operation should 
be allowed for suitable rests so as to prevent fatigue. 
An important precaution in conserving energy is making 
provision wherever possible for seats, so that workers 
may be resting as much of the time as does not in- 
terfere with the performance of their tasks. The ascer- 
taining of the proper time for an operation is no easy 
matter, and demands scientific investigation into every 
condition affecting the operation, and careful observa- 
tion and measurement in order to ascertain the time in 
which the operation may be accomplished in the partic- 
ular plant, and continued by efficient trained workers 
from day to day. 

Many believe that standard means perfection and 
fixity. This is false, as the idea of perfection is not in- 
standard volved in standard. A standard method is 
does not simply the best method that can be devised at 
mean per- the time the standard is set ; and in determining 
ec ion. j^^ consideration should be given to the actual 
conditions as they exist in a plant, and allowance be 
made for any limitations that might be present. It is 
also false to associate with standard, fixity and the pre- 
cluding of change. Improvements in standards are 
When to Wanted, as progress depends among other 
introduce things upon them. It is impossible to say 
changes in a when a new discovery may be made, or a new 
way of doing things be found which demands 
a change in the old way. The old standard should be 



METHODS 97 

changed, and a new one set up. Standards should not be 
subject to frequent changes in order to meet whims of the 
management. Experts should carefully study stand- 
ards, new inventions and discoveries, in order to see if 
any better way may be devised for performing any opera- 
tion in a plant under actual existing conditions. If a 
better way is discovered, and it is proven so by careful 
scientific investigation, the old should be discarded for 
the new. Changes in standard should be made only 
after careful investigation by a competent person of 
new ways of doing work, and it has been conclusively 
proven that the new is better than the old. As soon 
as that is proven, no hesitation should exist as to the 
desirabiHty of the change. A standard is simply the 
best method known at the time of its adoption, and may 
not be the best method the following week. The dis- 
covery of the best method, and it made standard is a 
demand of efi&ciency, but another demand equally im- 
portant is to see that the standard is always moving 
higher, keeping pace with new discoveries and ideas in 
the performance of work. Standard methods are those 
scientifically based on correct knowledge and principles, 
and representing the best possible, at the time, in the 
particular business enterprise, and which are reaHzable 
under existing conditions. 

Efficiency demands more than standard methods. In 
fact, standard methods make necessary standardization 
in many forms. Standard machines, standard standard 
tools, standard conditions of work, standard methods 
environment, and standard materials are all ™piy other 
necessary. Each should be the best possible ^ ^'^ ^ ^• 
for accomplishing a desired result under existing con- 
ditions. The obtaining of standard methods of work 
carries scientific investigation into every part of a busi- 
ness enterprise, and demands actual knowledge of every 



98 ECONOMICS OF EFFICIENCY 

detail of business activity. It carries science into every 
phase of business life. Standardization is an absolute 
demand of efficiency, and is one of the greatest factors 
working for industrial growth and progress. 

Business managements, in the performance of work, 
leave too much to workers, and take too little responsi- 
Res onsi bility upon themselves. Workers in the aver- 
biiity upon age business enterprise have no knowledge as 
manage- to what is the best way to perform a task, 
™®° ■ how long a task should take, how much a man 

should do in a day, or what are the best environments 
for the performance of work, and yet the responsibility 
of performance is largely put up to them. They are 
to get the work performed, following usually their own 
methods. The efficiency movement places all the 
responsibility upon the management, where it rightly 
belongs. It is the work of the management to discover 
the best way of doing work, the best conditions and 
environment for the performance of work, the selection 
and the training of workers in the best way, and the 
workers are to cooperate in following instructions, and 
in putting their entire interest and enthusiasm into 
what they are doing. Responsibility is taken in a large 
degree from the workers and placed upon the manage- 
ment, which is better able to guide workers in standards 
of performance of work. 

The discovery of best methods is of little use, unless 
provisions are made for their adoption, and their con- 
Adoption stant and persistent following. The qualifica- 
and use of tions needed in workers for each operation 
standard should be ascertained by careful study and in- 
°ie s. vestigation, and workers should be chosen 
who are especially adapted by nature and by training 
to efficiently perform the work. Too great emphasis 
cannot be placed upon the necessity of proper selection 



METHODS 99 

of workers. The Ideal condition would be to have 
every operation in a business enterprise performed by a 
worker adapted and fitted by nature and by training 
to do the work most efficiently. This should be the 
goal, and the nearer it is approached, the greater is the 
efficiency obtained from the working force. Selection 
by itself does not give efficiency without proper training. 
Workers should be carefully trained in stand- 
ard methods by competent instructors, ad^ted 
Where work demands constant repetition 
of similar movements, the training should be careful 
until habits are formed. Strict precautions should be 
taken by instructors to see that only standard move- 
ments are repeated, and that they are identically re- 
peated. In other words, the habits formed should be 
the correct habits of performing work according to 
standard methods, and training should be careful and 

thorough until these are formed. In the case , ^ 

Tod worfe 
of job work, standard methods, conditions, ma- 
chines, tools, and materials should be worked out in 
advance by the management. Instructions in detail 
should be made out and given to the workers, and ex- 
treme care taken to see that instructions are carefully 
and closely followed. 

Constant and careful supervision of work is an absolute 
necessity. It is essential to maintain a high quality in 
goods produced and in services rendered, super- 
Supervision is also necessary in making cer- vision; its 
tain that only standard methods are followed, importance. 
Adequate and proper supervision of every kind of work 
is absolutely necessary. 

An important consideration in gaining the cooperation 
of workers in following standard methods is that of re- 
muneration. The cooperation of workers is absolutely 
necessary, because without it efl&ciency in any form 



100 ECONOMICS OF EFFICIENCY 

cannot be obtained. The best incentive that can be 
given to any worker to follow methods and instructions 
How to gain is to prove to him that he is a gainer there- 
cooperation by. If a worker can be convinced that follow- 
of workers, jj^g instructions will be advantageous to him, 
the most difficult part of the task of introducing stand- 
ard methods is overcome. The incentive which appeals 
most strongly is that of increased remuneration. The 
workers should be shown that the increased output which 
results from following standard methods does not come 
from increased energy on the part of the workers, but 
from directing into productive channels the energies 
which before were misdirected and wasted. They 
should be assured that increased remuneration 
Just re- follows from increased output, and that the 

muneration. i • 

management will be fair and just m remuner- 
ating labor, and in all its deahngs with its working force. 
The assurance of just remuneration and treatment is 
necessary to obtain the cooperation of the working force, 
so essential in the successful introduction of standard 
methods. 

Work according to its character may be paid for by 
time or by piece rate. Many kinds of work only per- 
Methods ^^ remuneration by the time occupied. The 
and time performance of such work should be scien- 
^°^^- tifically studied, and the best methods ascer- 

tained for performance. With many kinds of work, it is 
possible to set a certain task to be performed during a 
day, and when this is finished, the worker is 
allowed to go. This method is successfully 
used in many of our business enterprises. With piece 
rate, the task is the fundamental basis. The task is the 
standard amount of any kind of work that a man should 
do in a certain period of time. The important problem 
is to ascertain the best method for the performance of the 



METHODS loi 

task, and what time should be allowed for it. Finding 
the proper time is an important question in piece rate. 
The task should be capable of being performed by care- 
fully trained men in the time set, and under existing 
conditions in the local plant. 

The discovery of the best way of performing work is 
the duty of the planning department. Planning is an 
important work in any business enterprise. In planning 
a small enterprise, the work may be performed department; 
by the employer himself, or it may be assigned ^^^ ^°^^- 
to a special employee, but in a large enterprise, it is the 
work of a special department. Planning is absolutely 
necessary in every establishment, large or small, as it is 
a necessity wherever any kind of work is performed. 
The planning department decides what is to be done, 
the method by which it is to be done, the men who are 
to do it, the tools and materials which should be used, 
the time it should take, the quality of the work, and the 
pay. It selects and trains men in the best methods, and 
secures machines, tools, materials, and conditions, the 
best possible for performing the work in the standard 
time allowed. With job work, the planning 
department predetermines the methods, 
tools, machines, and materials used, the men who are 
to do the work, route of work through the plant, the 
time necessary for performance, and the pay. The 
work is thus carefully planned before it goes to the men, 
and instructions are carefully made out as to methods, 
men who are to do the work, route, machines, tools, 
materials used, and the time allowed. The instructions 
are given to workers, and they should carefully follow 
them. It is the duty of the planning department to 
see there is no delay or waiting on the part of the men 
for machines, tools, or materials. Planning should be 
placed with experts, where it belongs. 



I02 ECONOMICS OF EFFICIENCY 

Formerly, and even to-day, little or no planning is 
done by the management. A job is given to the workers, 
Plannin ^^^ ^^ remains with them to find a way of do- 
negiected ing the work. The workers choose machines, 
in many tools, and materials, and no one knows how 
^ ^° ^" much time it should take. It is put up to the 

worker to devise his own methods, and to choose his own 
tools, materials, etc. The course of all work should be 
predetermined by experts before it is done, and if this 
were done, a vast amount of wasted energy would be 
turned into productive results. Employers would gain 
by increased profits, and employees by better working 
conditions, protection of health, and higher wages. The 
planning department has complete charge of standard- 
ization and raising standards. Experts are usually 
employed to carefully study local conditions and im- 
provements in methods, machines, and tools, in order 
to ascertain if a better way can be discovered for the 
performance of any one of the various kinds of work 
being done, and if a better way is discovered, to change 
the standard from the old to the new. 

Efficiency demands that all work, it matters not its 
character, should be performed in the way that gives 
Efficiency the best results with the least expenditure of 
and the best energy, materials, and time. The discovery 
'"^^- of the best way, and making it standard for 

every kind of work, is as important to the small estab- 
lishment as to the million-dollar corporation. The 
sooner business men reaHze that there is one best way 
of doing work, and that it means greater 
best way efficiency, lower costs, and higher profits, the 
based on greater will be their chance of success in profit- 
accurate making. They should also realize that the 

knowledge. • i i 

best way is not based upon guess, but upon 
careful knowledge, acquired by scientific investigation. 



METHODS 103 

Business men should bear in mind that knowledge 
is the foundation of future business expansion and 
growth. Efficiency, the goal towards which every 
business man should be working, makes the performance 
of work according to predetermined standard methods 
an absolute necessity. Our future industrial growth 
and expansion depend largely upon making our business 
enterprises more efficient, and this has its basic founda- 
tion upon efficient methods in the performance of work. 

QUESTIONS 

1. Account for the changed attitude of business men towards 
performance of work. 

2. Compare the old methods of performance of work with the 
new. 

3. What are the methods for ascertaining the best conditions 
for work ? 

4. Show that theoretical principles underlie business activities. 

5. What is the importance of time studies ? How should time 
study be conducted ? 

6. What is a motion study ? Show its importance to the busi- 
ness man. 

7. Mention the requisites necessary for ascertaining standard 
methods. 

8. What precautions shoidd be taken in ascertaining the time 
for a task ? 

9. When should rest periods be allowed ? How do you ascer- 
tain the time to allow ? 

10. Show that standards do not preclude change. What pre- 
cautions should be taken in introducing changes in standards ? 

11. Show that efficiency methods transfer responsibility from 
the workers to the management. 

12. Why should plant conditions be carefully studied in fixing 
time for task? 

13. What are the means for gaining the cooperation of workers in 
efficiency methods ? 

14. What are the functions of the planning department ? Esti- 
mate its importance in a business enterprise. 

15. How do employees gain by the adoption of efficiency methods 
of performance of work ? 



I04 ECONOMICS OF EFFICIENCY 

REFERENCES 

Books 

L. D. Brandeis, " Scientific Management and Railroads," Chs, 
VII, VIII; C. U. Carpenter, "Profit Making in Shop and Factory 
Management," Chs. VIII, IX, X; Clark and Wyatt, "Making 
Both Ends Meet," Ch. VIII; H. A. Evans, "Cost Keeping and 
Scientific Management," Ch. X ; F. B. Gilbreth, " Motion Study" ; 
F. B. Gilbreth, "Primer of Scientific Management"; L. M. Gil- 
breth, "The Psychology of Management," Chs. IV- VII; E. D. 
Jones, "Business Administration"; D. S. Kimball, "Principles 
of Industrial Organization," Ch. VIII ; The Library of Business 
Practice, Vol. II, pp. 132-140 ; F. A. Parkhurst, "Applied Methods 
of Scientific Management," Chs. III-VII; W. C. Redfield, "The 
New Industrial Day," Ch. II; The System Co., "How Scientific 
Management is Applied," Chs. II- VII ; F. W. Taylor, "The Prin- 
ciples of Scientific Management"; F. W. Taylor, "Shop Man- 
agement." 

Articles 

N. E. Adamson, "Production Betterment by Time Studies," 
Iron Age, Vol. 89, pp. 835-838 ; J. A. Anglada, "Standardization," 
Southern Machinery, Vol. 31, pp. 119-120; W. S. Ball, "Taking 
a Motion Apart," Factory, Vol. 10, pp. 131-132 + ; A. H. Church, 
"What to Plan and When," Engineering Magazine, Vol. 45, 
pp. 405-411 ; H. L. Gantt, "The Basis of Proper Management," 
American Machinist, Vol. 35, pp. 841-842; H. L. Gantt, "The 
Straight Line to Profit," System, Vol. 19, pp. 11 5-1 24; L. M. 
Gilbreth, "Measurement," Industrial Engineering, Vol. 12, 
pp. 1 16-120; L. M. Gilbreth, "Analysis and Synthesis," Industrial 
Engineering, Vol. 12, pp. 155-158; L. M. Gilbreth, "Standard- 
ization," Industrial Engineering, Vol. 12, pp. 199-204; L. M. Gil- 
breth, "Records and Programs," Industrial Engineering, Vol. 12, 
pp. 248-253; F. B. Gilbreth, "Units, Methods, and Devices of 
Measurement under Scientific Management," Journal of Political 
Economy, Vol. 21, pp. 618-629; H. K. Hathaway, "Elementary 
Time Study," Industrial Engineering, Vol. 11, pp. 85-96; H. K. 
Hathaway, "The Planning Department, its Organization," Indus- 
trial Engineering, Vol. 12, pp. 7-1 1; F. B. Jacobson, "A Time 
Study Piece Work System," American Machinist, Vol. 34, pp. 631- 
632 ; H. P. Kendall, "Systematized and Scientific Management," 



METHODS 105 

Journal of Political Economy, Vol. 21, pp. 592-617 ; C. E. Knoep- 
pel, "How to Make a Time Study," Industrial Engineering, 
Vol. 12, pp. 501-505 ; C. E. Knoeppel, "The Practical Introduction 
of Efficiency Principles," Engineering Magazine, Vol. 47, pp. 65- 
75; C. E. Knoeppel, "How to Make a Time Study," Southern 
Machinery, Vol. 30, pp. 58-60; C. E. Knoeppel, "Making More 
than One Study at a Time," Southern Machinery, Vol. 31, pp. 129- 
131; C. E. Knoeppel, "Determining a Fair Standard," Greater 
Efficiency, Vol. 3, pp. 25-43; F. A. Parkhurst, "Time Studies 
and Their Introduction," Industrial Engineering, Vol. 10, pp. 249- 
262; F. A. Parkhurst, "The Standardization of Methods and 
Tools," Industrial Engineering, Vol. 10, pp. 161-176; G. H. 
Shepard, "An Analysis of Practical Time-Motion Studies," 
Engineering Magazine, Vol. 43, pp. 538-546; W. H. Spire, "Some 
Advantages of Standardization," Southern Machinery, Vol. 31, 
pp. 86-87; S. E. Thompson, "Time Study and Task Work," 
Journal of Political Economy, Vol. 21, pp. 377-387 ; E. M. WooUey, 
"FindingtheOneBest Way," System, Vol. 19, pp. 227-238; E.M. 
Woolley, "Putting the 'One Best Way' into Practice," System, 
Vol. 19, pp. 356-366; E. M. Woolley, "Scientific Management in 
the Office," System, Vol. 20, pp. 3-14. 



CHAPTER VI 

Hiring op Labor 

A SUCCESSFUL business man once remarked that his 
success was due chiefly to the men whom he gathered 
Machines, around him. Human ability is a great busi- 
labor, and ness asset. To-day, more than ever before, 
efficiency. ^.j^g human element is the greatest factor in 
business operations. The best equipped plant cannot 
make a success unless properly skilled and trained men 
are in attendance. Again, skilled and trained labor can- 
not overcome the handicap of poor machines and equip- 
ment. The greatest efficiency is obtained by having the 
Importance t»est possible machines and equipment, with 
of skilled skilled and trained laborers properly organized 
workers. ^^^ working together for the success of the 
business enterprise. Efficiency places particular stress 
and emphasis upon the working force, the human brains 
and the human hands which form the most important 
factor in any business undertaking. In obtaining effi- 
ciency in a working force, the most difficult problem is the 
obtaining of men to perform the different tasks. 

The hiring of labor is an important work in every busi- 
ness undertaking, but it is given Httle attention and 

study. It is recognized as true that the men 
oiiahoT^a. whom an employer employs are the direct 
problem cause of his success or failure, yet it is only 
nTLcted recently that it is commencing to dawn upon 

the employer that a large share of the success 
of a working force comes from hiring the right kind of 
men for the several places in a business enterprise. The 

io6 



HIRING OF LABOR 107 

hiring of men is a difficult problem confronting a business 
man, yet how many employers pay any heed or attention 
to it ? The hiring of an employee, skilled or unskilled, 
is as important a matter as the buying of a machine, or 
the buying of goods. Careful examinations and tests 
are made by experts of every machine before ^^^„i^„ ^f 
it is purchased. Specialists are employed for machines vs. 
the buying of materials and commodities, men buying of 
who devote their entire time to the study of 
the goods, markets, etc., and these are often assisted by 
a staff of chemists and experts. Special care is taken in 
buying machines, tools, and materials, but Kttle attention 
is paid to the buying of labor, upon whom depends the 
getting of the greatest quantity of output of the highest 
quahty, and with the least waste from machines, equip- 
ment and materials. 

The buying of labor is left usually to people whose 
special work is something else, with a result that it is 
done usually in a way which is costly to buyer. Requisites 
and unsatisfactory to seller. The buyer takes for an ef- 
little interest in what he is purchasing and few ficient labor 
precautions to ascertain what he is getting. 
An efficient labor force can be obtained and maintained 
when the following requisites are fulfilled ; first, a care- 
ful study of each task, its demands ascertained, and 
workers selected, who are especially fitted for the work 
to be performed ; secondly, extreme care in the selection 
of workers, so as to obtain those that will be satisfactory, 
without the expense of the old system of experimenting 
or trial; thirdly, the best possible method of work for 
the different tasks, and the training of workers in the 
methods adopted ; fourthly, the equipping of a plant with 
the best possible machines, tools, and materials, the 
keeping of machines and tools in the best repair, and 
proper planning, so that there is no waiting on the part 



io8 ECONOMICS OF EFFICIENCY 

of the workers ; fifthly, a fair reward to each man for 
his labor; lastly, working conditions which are most 
conducive to health and to work. 

A chief requisite in the obtaining of an efficient labor 
force is the proper selection of workers for the different 
, , . tasks to be performed. Employers are usually 

Macmnes ,, , . ^ , . , .^ -^ , ^ . -,-' 

are studied careful m purchasmg machines and materials, 
before pur- but when it comes to hiring labor, they wait 
chase, but -Qutil a man is needed, and take the first one 

not men. '. , .. 

who comes along. It is true that ii a person 
uses care, he can accurately determine the constituents 
of materials, and the work and the speed of machines. 
It is a fact that the capabiHties and the efficiency of 
workers can at most only be estimated. Is it not true, 
that there are certain external features and characteris- 
tics, which portray physical and mental strength or weak- 
ness. By a careful examination of applicants, and by 
information obtained from previous employers, a person 
skilled in reading human nature, and knowing the re- 
quirements of a place to be filled, can decide on the appli- 
cant who is best suited to fill a vacancy. 

The uncertainty of a newcomer in a business enter- 
prise is one of the most baffling questions confronting our 
The uncer- business men. If it were possible for an em- 
tainty of a ployer of labor to order new workers accord- 
new worker. |j^g j.^ g^act specifications, as he does his ma- 
chines and materials, one of the most important problems 
in our efforts to increase the efficiency of our industrial 
and business operations would be solved. Dr. Katherine 
Blackford claims that she has reduced the hiring of labor 
to a science, and that an applicant may be studied and 
his special fitness determined for a particular vacancy. 
Whether she has reduced this important work to a science 
may be questioned, but it must be admitted that her 
investigations have done a great deal to solve the ques- 



HIRING OF LABOR 109 

tion of the uncertainty of a new worker. Nevertheless, 
it is true that there are certain suggestions, which if fol- 
lowed by employers, will greatly assist in increasing the 
efficiency of a working force, and in reducing much of 
the expense incurred by the old haphazard method of 
hiring men. 

Machines are tested for efficiency before purchase, 
and materials for quality, but the usual practice is to 
take workers at a rough guess. They are common 
usually hired upon general recommendations, practice in 
and taken on trial. Those who, on being ^li^ingmen. 
given a trial, are not satisfactory, are dismissed, and 
other trials are made until the required number is ob- 
tained. The old method of selecting men is a mere 
process of guesswork. No attempt is made to study the 
individual. Hiring is usually left to the superintendent, 
who, when he wishes workers, inserts an advertisement in 
the city paper, and spends perhaps thirty minutes the 
following morning to pick out the ten or fifteen men that 
he needs. He trusts to his snap judgment to size up the 
men at a glance. Frequently the first ten are taken, and 
a sign is placed outside, ''No men wanted." . 
Out of the ten men hired, the superintendent baTeTon 
considers himself fortunate if he secures seven guess and 
good men. After a trial, the three unsatis- ^^^.^^^^" 
factory ones are dismissed, and three more 
tried. Of these, one may prove unsatisfactory, he is 
dismissed, and another one is tried. The process con- 
tinues until ten satisfactory men are secured. This hire 
and fire process is wasteful and expensive, yet it is the one 
in common use to-day. The manager of a large business 
enterprise estimates that it costs him two hundred dollars 
for every twenty-doUar-a-week man hired and broken in. 
Another declares that for every dollar paid a new em- 
ployee for the first few weeks, he is out two dollars for 



no ECONOMICS OF EFFICIENCY 

breaking in, and still another states that the breaking 
in of a new employee to a position of any importance 
costs two months of his time before he is seasoned. 

One of the basic principles underlying efficiency is 
continuity in service. Nothing so works against effi- 
Exneri ciency as continual change in a working force, 

menting Men when they know that they are likely to 
with men is ^g discharged at any minute do not take an 
^' interest in their work, and do not give their 

best service. Experimenting with men is costly, 
and the less an employer is compelled to experi- 
ment, the greater are his chances of success. One raw 
recruit among a number of trained men is a disorgan- 
izing element, and adds to expenses by causing a les- 
sened efficiency of the whole body of men with whom 
he works. Experimenting is one of the direct effects of 
the old and prevailing hire and fire method. In an enter- 
prise employing a large number of men, and where the 
hire and fire method is in operation, the annual loss from 
experimenting amounts to a considerable sum of money. 
Here is a waste that should be eliminated, and the only 
way to do this is to be systematic and careful in the 
selection of workers. 

Employers have recently recognized the great im- 
portance of holding men in their organization. In a 
laboring force, continuity of service is the 
men in^an ideal, and employers should bear in mind that 
organiza- permanence and efficiency go hand in hand, 
tion; im- ^pj^g necessity of discharging men would be 

portance. , iii- oo .,.. 

obviated by having proper systems of hiring 
and of handling them. High efficiency cannot be main- 
tained unless a high degree of permanency exists in a 
working force. In how many establishments do we find 
men taken on, and laid off, without thought or considera- 
tion for their welfare. Men frequently work with the 



HIRING OF LABOR iii 

sword of Damocles hanging over their heads in expect- 
ing discharge every pay day. When such a method is 
in operation, how can an employer expect his j.^^ ^^ 
men to work with any interest ? How can he constant 
expect them to cooperate with the manage- hiring and 
ment for the success of the enterprise ? How "^^' 
can he expect loyalty, interest, and enthusiasm? Per- 
manency in service is one of the handmaids of efficiency, 
and has its basic foundation in a proper system of re- 
cruiting properly equipped, quahfied, and trained men for 
the working force. The hiring of men is closely related 
to permanency and enthusiasm, which are so essential for 
increasing efficiency. 

There are so many incompetent men in the industrial 
field that it is absolutely necessary to exercise great care 
in hiring, so as to avoid failures, misfits, and ^^^-^^^^ 
dereHcts. Loss and disorganization are occa- and hiring 
sioned by hiring a man, and later finding him ^^^ "g^^* 
a failure. Every working force, if it is to be °^^°" 
efficient, should have its members carefully selected, and 
it is the wise selection of workers which is one of the marks 
of good management. Upon hiring the right workmen 
more than upon anything else depends the efficiency of 
a working force. Human abihty is one of the most im- 
portant things that a business man buys, and to its 
selection more careful attention should be given. When 
the importance of labor in every branch of business is 
considered, it is strange that employers do not give more 
care to the work of selecting proper men. 

A basic requisite in selection is to know the place to be 
filled. Every place in a business enterprise ^j^^ ^^^ , 
makes many demands upon its occupant, so of the re- 
that it may be filled with the greatest possible quirements 
efficiency. The demands should be known ° p^'^^s. 
and heeded in filling vacancies. A place demands certain 



112 ECONOMICS OF EFFICIENCY 

qualifications in a man. The first great problem is, there- 
fore, to know the requirements of a place, and the 
second is to have the ability to pick out a man with the 
required quahfications. It stands to reason that it is 
only by luck that a superintendent by snap judgment, 
and without study of a place to be filled, can decide by 
glancing at a man that he possesses all the qualifications 
necessary to meet the requirements of the place. The 
average superintendent knows little about the require- 
ments of a place, and pays little attention as to whether 
or not an applicant possesses the necessary qualifications. 
If an appHcant has a good appearance, a good letter from 
a previous employer, and knows the trade or the work 
to be performed, he is usually told that he will be given 
a trial. Guesswork and chance govern selection. Su- 
perintendents who in the average business enterprise hire 
and dismiss workers have their time so taken up with 
the routine of their work that they have no time for 
studying the requirements of the different places under 
them, and Httle time to study the qualifications of 
applicants. 

The superintendent is not the man to hire men. The 
hiring of all employees should be placed in charge of an 

expert, a person competent to make a thorough 
offichi"^and ^^udy of every place in a plant, and able to 
not the decide what are its requirements. This is the 

superintend- gj-gt essential. The second is that he should be 
hS'e men. ^^ expert in the reading of human nature, and 

able by interview and from other sources, to tell 
the qualifications of men, and to pick out the one possessing 
the qualifications necessary to fill a place with the greatest 
efficiency. In the selection of workers, the two funda- 
mentals are to know the requirements of a place to be 
filled, and to be able to pick the man best fitted to fill it. 
Formerly, and even to-day, many business men believe 



HIRING OF LABOR 113 

that it is impossible to tell before a man takes a place, 
if he is fitted for it, and will prove successful. During 
the last few years, considerable progress has been made 
in methods for the ascertaining of the requirements of a 
place, and for the selection of a worker with the proper 
qualifications to efficiently fill it. The problem is to de- 
vise some method of reading a man's quahfications for 
a place without going through the expensive trial stage. 
The development of a simple and practical system of 
hiring labor will be one of the achievements of the next 
few years, and will prove a great boon to all forms of 
business activity and a great factor in increasing the 
efficiency of a laboring force. 

Unless men are chosen suitable for the places they are 
to fill, disastrous results frequently follow. Hiring by 
guess means the entrance into a working force Misfits in a 
of misfits. A misfit is one engaged in work laboring 
for which he is not by nature or by training ^°^'^^- 
fitted. Misfits easily gain entrance into a working force 
under the old system of hiring, while it would be difficult 
for one to gain entrance under a competent employment 
system. A misfit causes loss through inefficiency of work, 
through HabiHty of breakages of machines if . 
attending them, through spoiling materials, 
and through the lowering of the efiiciency of the workers 
with whom he works. A misfit is usually not interested 
in his work, or the success of the enterprise. His presence 
works against enthusiasm and loyalty, and prevents 
harmony and cooperation. Every business man should 
strive to ehminate misfits by being cautious in hiring 
labor. The saving from the elimination of misfits will 
in a large plant many times cover the expense of main- 
taining a competent employment system. An ideal 
working force is one having all places filled by men fitted 
by nature and by training for their tasks, and working 



114 ECONOMICS OF EFFICIENCY 

with the greatest efficiency and cooperation for the success 
of the enterprise. 

To get the greatest efficiency from a laboring force, 
every worker should be not only fitted by nature for his 
Requisites task, but should be trained in the best method 
in labor for its performance. Every place demands a 
efficiency. worker fitted by qualities, aptitude, and train- 
ing for it. The aim of a business man should be to have 
every place in his plant filled by a man suited by nature 
and by training for performing his particular task in the 
most efficient manner. The men in a plant should be 
carefully studied, as well as those who are hired. It 
should be ascertained if they are suited by nature and by 

. training for their tasks. If lacking in train- 

Are men . '^ Til 

fitted by mg, that may be easily remedied, but if not 
nature for fitted by nature or aptitude, that is a more 
eurwor . ggj-JQ^g problem, A change of place may 
change a failure into a success, or may materially increase 
the efficiency of a worker. Efficiency may often be in- 
creased by a little training, or by transferring a worker 
^ . . to work for which he is adapted. The prob- 

Trainins • . • 

lem of having men engaged in tasks for which 
they are best adapted and trained is an important one 
in every business enterprise, and is one which is sorely 
neglected by business men. The task of studying the 
men employed, and of ascertaining whether or not they 
are especially adapted for their work should be made a 
function of the employment expert. He is the man 
best suited to make such a study, and he should be the 
one given charge of this most important work. 

The employment expert should have on file in his 

office the requirements of every place in a 
How to fill a ]-)^giness enterprise. The office should be open 

every working day for the receiving of appli- 
cations. Every applicant should be carefully examined, 



HIRING OF LABOR 115 

and if found satisfactory, his name with quaHfications 
should be carefully indexed and filed. The expert should 
make note of the place which the appHcant is best fitted 
to fill. If there is no vacancy, his name should be put 
on file for one which he can fill. When a vacancy occurs, 
the superintendent sends word to the employment ofiice 
that such a place is vacant. The expert goes to his file 
and sees if he has passed satisfactorily upon any appli- 
cant; if so, word is sent to him that a vacancy has 
occurred, but before he is finally accepted, it is advisable 
to have him undergo a thorough medical examination to 
see if there is any physical weakness which might in the 
future develop, and unfit him for efficient work. If no 
names are on file, it may be necessary to advertise. It is 
poor policy to receive applicants only when a vacancy 
occurs. 

The employment department is one of the most im- 
portant departments of every large business. Its suc- 
cess in selecting and adjusting men to their Empw. 
work is very important. In a small business, ment de- 
employing only a few men, it is too expensive partment; 
to maintain an expert, but the employer himself ^^"^^^ 
or one of his ablest men should devote time and study to 
places and men in the enterprise, to find out if the men are 
qualified, adapted, and trained for their work, and to be 
able to fill vacancies with workers, who will efficiently 
perform the required work. The employment expert is 
an important factor in every business, and his impor- 
tance is rapidly becoming recognized. Extreme care 
should be taken in his selection, as a properly qualified 
employment expert is as essential as a properly qualified 
superintendent. His success in studying places and men, 
and adjusting men to places, is an important requisite 
for efficiency. 

Andrew Carnegie frequently refers to what he has 



ii6 ECONOMICS OF EFFICIENCY 

gained by being able to read human character, and to 
pick right men for right places. His power to read 
Requisites human nature, and tell from an interview 
for selection whether a man is physically and mentally 
of workers, adapted for a place is phenomenal. During 
his business career he rarely made a mistake in his choice 
of men, and his success in surrounding himself with an 
enthusiastic and loyal working force is largely due to this. 
This power of selection is intuitive, and belongs to the 
subconscious mind rather than to reason. It is by in- 
tuition rather than by sound judgment that selection is 
made. Few men have this gift, and the average em- 
ployer relies on judgment in sizing up men in an inter- 
view, and deciding whether or not health, character, and 
capabilities are adapted to places to be filled. 

There are certain fundamental qualifications, the total 
lack of which, or the serious lack of one, makes an appli- 
Funda- cant unsuitable for any position. These are 

mental health, intelligence, character, and industry, 

tions for' Health is an absolute essential for every kind 
efficient of work, and a sound body should be the first 
work. demand of every applicant. A worker should 

not be hired who has a weakness, which if it does not at 
present impair his health, will in the future. If a weak- 
ness is only temporary, and can be cured in a short time, 
that should not count against an appKcant, 
but care should be taken that attention is 
given until the weakness disappears. A true eye and a 
steady hand for the full working time are valuable assets 
in every plant, and they demand a sound healthy body. 
A healthy working force and precautions for the pro- 
tection of health are essentials for increasing efficiency. 
A strong, healthy working force is less liable to accident, 
fatigue, and overstrain, and promotes efficiency in every 
form of business activity. 



HIRING OF LABOR 117 

A good eye is a valuable asset, and particular attention 
should be taken with every applicant to ascertain if any 
eye-weakness exists. Defective eyesight is a 
hindrance in any kind of work, and this is hetring^ 
particularly true in all work where true and 
keen eyesight is required. Good hearing is essential in 
the majority of cases, and deafness is a handicap in 
almost every kind of work. Precautions should be taken 
to test the sight and the hearing of all apphcants. There 
are certain exterior signs which tell of good 
health and physical weakness. If the eyes j^g^th 
are dull, listless, and show streaks of yellow in 
place of clear white eyeballs, it shows that something is 
wrong with the health of the person. A healthy person's 
finger nails are always pink underneath. Yellow or 
pallid skin, pale or blue lips, are indications of ill-health 
and bodily weakness. 

Physical endurance is a fundamental for efficient work 
and is a valuable asset in every worker. It is in a large 
measure the result of oxygen taken into the Requisites 
lungs. A large nose and wide-open nostrils for physical 
are needed to furnish the means of a bountiful endurance, 
supply of oxygen. Physical endurance demands a steady 
strong heart action, and an accompanying normal nervous 
system. Workers with a weak heart should be avoided, 
as the weakness sooner or later undermines health and 
impairs efficiency. A weak or deranged nerv- ^flEects of 
ous system works against efficiency, and care weak ner- 
should be taken in hiring to avoid those pos- '^o"^ sys- 
sessing such a physical defect. A weak nerv- ^™^" 
ous system causes overstrain, and the consequent evils 
of fatigue, impairs physical endurance, and undermines 
health. It causes irritability, and an irritable person is 
a factor working against harmony and cooperation, and 
as such is undesirable in a working force. Nervousness 



ii8 ECONOMICS OF EFFICIENCY 

is betrayed in several ways. A close observation during 
an interview and during the answering of questions will 
show the presence of a weak nervous system. 

There are many physical weaknesses which cannot be 
determined by close observation of external characteris- 
Necessity ^^^^' ^ employer should never depend en- 
of medical tirely upon observation. A thorough medical 
examina- examination by a physician should be made 
before a new worker is allowed to go to work. 
The examination should be not only for the purpose of 
finding out present ailments, but if the applicant has 
any weakness which might in the future develop, so as 
to impair health and efhciency. If a weakness is found, 
what is its nature ? Can it be cured by care and medical 
treatment ? If so, it should not prevent a person from 
Barriers to being hired. If a weakness interferes with 
employ- present or future efficiency, and cannot be 
ment. remedied, the appHcant should not be taken 

into a force. The presence of any loathsome disease 
should be a barrier to employment. It not only under- 
mines the health of the sufferer, but such diseases are 
usually very contagious, and their presence might be the 
means of impairing the efficiency of several in a force. 
Physicians should pay particular attention to traces of 
the drinking habit. A person addicted to the use of 
liquor should not be taken into any working force, it 
matters not how unimportant a position it is. It can- 
not be too strongly impressed on an employer that one 
absolute essential to work, it matters not its character, 
is a sound body. This applies to the employer of one 
or two workers as well as it does to the corporation with 
a labor force of several thousand. The efficiency of a 
working force bears a close relation to the percentage of 
sound bodies in the force. The first step to insure a 
strong healthy working force is the selection of workers 



HIRING OF LABOR 119 

with sound bodies. The work does not end with secur- 
ing healthy sound workers, but extreme care should be 
taken to keep a force healthy and strong. 

Habits play an important role in efficiency. Good 
habits while at work and while away from a plant have 
a greater bearing upon the efficiency of a 
working force than the average employer effidlncy 
realizes. They represent a valuable asset to 
an employer, and as such demand his close attention. 
It is necessary to find out the habits of an appHcant 
during an interview. The effects of some How to as- 
habits are shown in the features, or in the certain 
actions of men. Carefully prepared questions ^^^^*^- 
should be made out and answered by the apphcant. Note 
should be made of external characteristics, and of actions 
during an interview. Questions on diet, regularity of 
eating meals, hours of eating, hours of rest, interest in 
theaters, use of alcohol, tobacco, and drugs, interest in 
games, papers, books and magazines read, card playing, 
etc., furnish valuable information as to the habits of 
appHcants. All these questions to the average man may 
seem frivolous and nonsensical, but to the student of 
human nature they have an important bearing upon 
habits, and as such, are of the utmost importance to a 
person hiring men. 

Age is always an important consideration. From 
eighteen to thirty-five are given by experts as the years of 
maximum vigor, but a man from thirty-five . 

to forty-five, with a sound body, good habits, 
good eyesight, and a good set of developed muscles is a 
good investment. With work where skill, alertness, and 
concentration of thought are necessary, it is advisable to 
confine new workers to the first age Hmit. 

The drifter or floater has no place in any laboring force, 
and is an undesirable person in any business enterprise. 



I20 ECONOMICS OF EFFICIENCY 

His presence usually causes friction, and detracts the 
interest and attention of others from their work. Drifters 
The drifter ^.re an important factor working against har- 
in a working mony and cooperation in a force. Extreme 
force. (,g^j.g s]^Qyi(^ \jQ taken to bar drifters, because 

every one gaining entrance to a plant means not only 
loss, but the impairing of the efficiency of those around 
him. Every applicant should be closely questioned about 
previous places where he had worked, and his reasons for 
leaving. A drifter usually has a fund of excuses for his 
changes, but one who has not a guilty con- 
drifTers ^^ science is usually as brief as possible in stating 
his reasons for change. With unskilled or 
semi-skilled labor, shrewd questioning and a careful 
study of the person while answering give sufficient evi- 
dence to decide whether or not an appHcant is a floater. 
In cases of skilled workers, it is advisable to corroborate 
your conclusions by a confidential report from the last 
employer. "To Whom it may Concern" letters are of 
Httle or no value. A list of questions sent to the last 
employer is of great importance in estimating a man's 
fitness for a place. Judgment should be exercised in 
making out the questions, and only information asked 
which is absolutely needed to decide an applicant's fit- 
ness for a vacancy to be filled. No standard list of ques- 
tions can be given because the questions vary with places 
and with plants. Answers from employers are usually 
prompt and honest because they are coming to realize 
that their interests in this respect are mutual. 

Letters should come from the person who has charge 
of the employing of men. Wherever the old method of 
Objections allowing the superintendents to hire and to 
to personal dismiss is in practice, there is an objection to 
letters. personal letters. Frequently, a good worker 

arouses the antagonism of his superintendent and is dis- 



HIRING OF LABOR 121 

missed, not because he is inefficient, but because he has 
aroused the hatred of his superior. Many superintend- 
ents will go out of their way to prevent such an employee 
from getting a place elsewhere, and will take special 
pains to injure him in letters. If a wide discrepancy 
exists between the estimate of fitness from an interview 
and a letter from a previous employer, care should be 
exercised in discovering if any reason exists for the con- 
flicting statements of the letter. A man should not 
always be condemned because his last employer gives 
him a bad record, but where there is an employing expert, 
such an attitude against a man for personal reasons is 
rare. 

A person who is loud in condemnation or in criticism 
of his previous employer should be avoided. An employer 
should guard against the chronic fault-finder, 
as a worker whose interests lie in criticism is ^lockCT 
not one to increase the harmony or the co- 
operation of a working force. He is a disturbing element, 
and usually soon tires of his present work, and in place 
of working for the welfare of the business, criticizes 
methods and surroundings. A knocker has no place in 
any industrial enterprise, and this appHes to all members 
of an organization, including those in executive positions. 

Intelligence is a requirement for every kind of work. 
Brains as well as brawn are demanded in an unskilled 
laborer, in order not only to perform intel- importance 
ligently the work to be done, but to permit ©finteiii- 
development into a semi-skilled worker. With ^ence in 
the unskilled and the semi-skilled classes, ^°^^^^^- 
those with intelligence are always reaching out for new 
methods and for short-cuts. They are more easily 
trained and are capable of attaining greater efficiency. 
A greater degree of intelligence is a requisite in the case 
of the skilled laborer, as contrasted with the unskilled or 



122 ECONOMICS OF EFFICIENCY 

the semi-skilled. With highly specialized and automatic 
machines, a greater skill is required in workers than in 
the case of simple machines. A demand of efficiency is 
an intelligent working force. The greater the degree of 

intelligence, the greater are the chances of a 
ascertain. higher efficiency. The average person carries 

his marks of intelHgence upon his countenance, 
which a student of human nature may easily read. Intel- 
ligence is manifested by the expression of the eyes, by the 
readiness in answering questions, and by the wording and 
the pointedness of repHes. What is the education and 
the training of the appHcant ? What is the nature of his 
reading ? Does he read any technical books or magazines 
connected with his work ? The giving of a few technical 
questions on the appHcant's particular work is a good 
test of intelligence. All the foregoing are little tests 
which portray a person's intelligence. The aim of every 
employer should be to obtain the most intelligent men 
possible, and special attention should be paid to intelli- 
gence in an appHcant before employment. 

Thrift is a good characteristic in a worker. Thrift and 
floating are seldom found in the same person. A married 

person is usually steadier than one who is un- 
ofto^ft^^^ married. Has the appHcant any property? 

Has he a bank account ? Is he married ? If 
so, how large a family? All these are indications of 
steadiness. 

Industry is a necessary fundamental in every worker. 
A lazy worker is a handicap to every working force. 
Industry a Special care should be taken to assure indus- 
requisite'in try in appHcants, so as to avoid the entrance 
every Qf ^ lazy worker into a laboring force. Man- 

"^^^ ^^' ner of walking, standing, and sitting, and 
attitude in shaking hands tell much to the student of 
human nature as to the industry, the alertness, and the 



HIRING OF LABOR 123 

stupidity of an applicant. In the case of unskilled 
labor, bodily strength and endurance are the worker's 
stock in trade. His hands tell if he is accus- 
tomed to toil, and his shoulders, legs, and arms ^°^f.^° 
whether he has a physical force to perform 
the work. The foregoing observations are sufficient to 
decide industry in the case of the unskilled or the semi- 
skilled, but with the skilled it is better to further corrob- 
orate your decision by reference to a previous employer. 
Precautions should be taken to ascertain the charac- 
teristics of an appHcant to decide whether or not they 
are likely to be helpful or detrimental to work. character- 
Honesty is a necessary quality in every worker, istics which 
A person carries many exterior signs of honesty . promote 
The eyes and the mouth are good indices. A ^ "^'^'^y- 
person who seldom meets your gaze, and avoids looking 
you in the eyes in an interview is usually a person to be 
avoided. Many experts claim that by a person's eyes 
and mouth honesty can be told. Honesty, uprightness, 
and openness are qualities to look for. Gait on entering 
a room, manner of speech and gestures are 
guides to foretell these important characteris- ascrrtain 
tics. Tact is an important characteristic. 
Some experts ascertain this by questions as to what would 
be done in special cases. Perseverance, good-temper, and 
firmness are valuable characteristics, and may be read 
from facial features, walk, handshake, straightforward 
look in the eye while questioning, manner of standing 
and of sitting, and answers to questions. Neatness and 
tidiness in dress and in appearance usually foretell neat- 
ness and tidiness in work. Carefulness, neatness, 
tidiness, and system in work are essential for efficiency. 
These characteristics may be ascertained by paying at- 
tention to a person's dress, Hnen, manners, shoes, finger 
nails, teeth, and tidiness of person in general. 



124 ECONOMICS OF EFFICIENCY 

Obstinacy, sullenness, quick-temper, carelessness and 
slovenliness are weaknesses, and should as far as possible 
Character- ^^ avoided. They may be overcome, but if 
istics which a person is past middle age, it is difficult to 
promote in- change habits formed in youth. All are 
ciency. weaknesses affecting the efficiency of a working 
force, and frequently considerable losses arise from their 
presence. Carelessness is a chief cause of fires, accidents, 

and business losses arising from breakages, 
detect" damaged materials, and stoppages due to 

breakages. A careless worker is an inefficient 
worker, and is a factor of inefficiency that should be 
eliminated in order to make the working force efficient. 
Special attention should be paid to every applicant to 
ascertain the presence of carelessness, and its presence 
should be sufficient cause to prevent the hiring of a 
worker. 

Skill and experience are two prime factors in a work- 
ing force. Has the appHcant sufficient skill to do in the 
Skill and most efficient manner the work that the place 
experience requires? What has been his training? 
in workers. "WAJ^at has been his experience after receiving 
his training ? What is the length of service in the pre- 
vious place ? Has his work been of the same character 
as that for which he is an applicant? What training, in 
the case of a skilled mechanic ? Has it been along effi- 
cient lines, or not? If not, what is the intelligence of 
the applicant, and the prospect of training in efficiency 

methods, or in methods if different from his 
ascrrtoi ^^^^ place ? These are some questions which 

every employer of men should give careful 
attention and care. The chief considerations are pre- 
vious records and training. Close questioning on the 
technique of his trade usually discloses a person's knowl- 
edge of his work. Letters from previous employers as to 



HIRING OF LABOR 125 

skill, work, promptness, and regularity should be given 
careful consideration. Too great emphasis cannot be 
placed upon the necessity of care being exercised in as- 
certaining a person's skill, which depends ahnost entirely 
upon his training and experience. 

An important power to possess in hiring workers is 
to be able to decide from an interview what 
is the capability of an applicant. The abihty ^^^ H^^, 
to recognize, frequently under an unpromising bUity is a 
exterior, what a man really is or may grow into, ^^^^^bie 
is valuable in hiring men. Andrew Carnegie 
has an almost uncanny power of sizing up a man, and 
telling whether or not he would make good in a position, 
or what he would develop into. Where this power 
exists, it is a valuable asset. The average employer of 
men has not this gift of nature, but is compelled to 
depend largely upon his judgment and his powers of 
reading human nature. 

It is an easy matter to pick men who have successful 
records behind them, but a careful examination should 
be made because often a man who has been a t,..„.- „ 

1 • 1 r 1 • Ml 1 Limitations 

success m one kmd of busmess will be a com- and possi- 
plete failure in another. Frequently, men bUitiesof 
are found who are great successes in one plant, 
and when placed in another with a new laboring force, 
and new environments, fail. Again, men who have been 
failures in one plant may, in a new environment, succeed, 
so a change of place may make a success out of a failure. 
The greatest asset for a new man is his ability to make 
good, and the greater the number of newcomers who 
make good, the less will be the loss from introducing new 
men, and the greater the chance of increasing the effi- 
ciency of the working force. Employers should be on 
the lookout for men who excel in interviews but are 
failures at work. Many of these are floating about in 



126 ECONOMICS OF EFFICIENCY 

our midst, and the shrewdest hirers of labor are often 
deceived by them. Care should be taken against this 
deception, and the fewer hired, the better for any busi- 
ness enterprise. Too great emphasis cannot be placed 
upon the ability of a hirer of labor to size up men, and 
pick out those who have the ability and the capacity to 
make good and become efficient workers. The ability 
to recognize the limitations as well as the possibilities of 
men is very important. The ability to size up men for 
these two essentials intuitively is found only rarely in 
man and is decidedly no common gift. It is based in the 
average hirer of labor upon careful investigation and 
sound judgment, and not upon snap judgment or guess. 

Wherever an apprentice school is conducted by a busi- 
ness enterprise, the selection of apprentices is an im- 
Care in portant task and as great care should be taken 
selection of as with applicants for the best places in the 
apprentices, pj^nt. Apprentices are to be the skilled 
workers of the future, and from their ranks the chief 
executive places are to be filled. The greatest care 
should be taken to select those who have capabilities. 
They should be under careful supervision during the 
period of apprenticeship to ascertain whether or not any 
mistake had been made in foretelling their development 
into efficient workers. 

The average employer makes a mistake in not giving 
care and attention to acquaint new men with plant con- 
. . ditions, and to instruct them in the duties of 
men* witiT^ their new places, so that they will become 
new place efficient parts of the organization in as short 
and training ^ ^.jj^g ^^ possible. Many new men are put 

in work £^ -^ IT 

to work without a real knowledge of what they 
are to do, and often they do not understand what is 
expected of them. It is an actual fact that in many 
business enterprises, many of the workers have only a 



HIRING OF LABOR 127 

hazy idea of what they are expected to do. A new worker 
should be placed under the direction of an expert, who 
is to carefully supervise his work, and to see if he has the 
plant methods of performing his task. If not, he should 
be carefully instructed in the plant methods, and the 
instruction should be continued until proper habits of 
work are formed, and the worker becomes an efficient 
member of the organization. The instruction of new 
workers is an important essential, and frequently effi- 
ciency is lost by paying little or no attention to it. 

Each man in a plant should have his own card. This 
card should show the time when first entering the busi- 
ness, and his qualifications as ascertained from card record 
reports of previous employers and from inter- of each 
view. If a man is discharged, the reasons ^°^^^^- 
therefor should be placed on the card. This is neces- 
sary in order to prevent being imposed upon by worthless 
workers. The card index should be carefully kept for 
unskilled as for skilled workers. One case recently came 
to my notice. In a large factory, a man was 
hired and discharged as incompetent by five 
different superintendents before it was ascertained that 
he was an impostor. With a centralized employment 
bureau, and a good card index, such imposition would be 
impossible, but under the old system of superintendents 
hiring and firing men, men were frequently dismissed by 
one superintendent, and the next morning hired by a 
superintendent in another department. System is as 
necessary in an employment department as it is in other 
departments, and care should be exercised in having an 
efficient system and not one over-burdened with red 
tape. 

A prime essential for an efficient working force is the 
selecting of individuals who will soon fit into an organi- 
zation and become efficient. It means the replacing of 



128 ECONOMICS OF EFFICIENCY 

the old haphazard method by one based upon careful 
investigation and sound judgment. Even to-day, few 
Efficiency employers realize the importance of care in 
and the Selecting qualified workers fitted for the places 
hiring of to be filled. Efficiency demands care in the 
hiring of workers, and to the employer it is 
a dollars-and-cents proposition. The placing of hiring 
in charge of a single person rather than leaving it to 
different superintendents is an absolute necessity in a 
business enterprise. The careful study and investi- 
gation of the needs of every position will soon be 
realized and attention given to it. The next few years 
will see the passing of the old methods of hiring labor, 
and the growing importance of a new official, the head 
of the employment department, who will not only be 
called upon to study carefully every position, and in 
case of a vacancy, fill it by the choice of one who is 
best fitted by skill and experience to perform efficient 
work, but he will also be called upon to carefully study 
the working force to see that each is assigned to work 
for which he is the best adapted, and to select appren- 
tices and place them so that they will become efficient 
workers after they enter regular service. The hiring of 
labor is so important in every business enterprise that 
one wonders why business men were so long blind to the 
defects of the old haphazard, hire and fire method, and 
did not earlier realize the necessity of giving attention 
and study to it. 

QUESTIONS 

1. What have been the changes in our industrial system which 
have increased the demand for skilled workers ? 

2. What is the old practice of hiring laborers ? 

3. State and explain the requisites for an efficient labor force. 

4. What is the relation between efi&ciency and permanency in 
service ? 



HIRING OF LABOR 129 

5. What are the evils of constant hiring and j&ring ? 

6. What is the importance of a study of the requirements of 
places ? 

7. Why is the average superintendent unfit to hire men ? 

8. What is a misfit in a labor force ? Why should he be 
eliminated ? 

g. What are the necessary steps in filling a vacancy ? 

10. What is the work of an employment department ? What 
are the qualities needed for its head ? 

11. Name and explain the fundamental qualifications neces- 
sary for efficient work. 

12. Mention different methods of ascertaining (i) health, 
(2) skill, (3) habits of an applicant. 

13. Why is a drifter undesirable in a working force ? How may 
a drifter be recognized ? 

14. What precautions should be taken with personal letters ? 

15. What characteristics in laborers promote (i) efficiency, 
(2) inefficiency? 

REFERENCES 

Books 

Blackford and Newcomb, "The Job, the Man, and the Boss"; 
N. A. Brisco, "Economics of Business," Ch. IX; The Business 
Man's Library, Vol. VIII, "Employer and Employee"; E. Cad- 
bury, "Experiments in Industrial Organization," Ch. I; S.Dean, 
"Shop and Foundry Management," Article III; H. Diemer, 
"Factory Organization and Administration," Ch. XXII; H. 
Miinsterberg, "Psychology and Industrial Efficiency," Ch. X; 
Worman, H. A., "How to get Workmen." 

Articles 

G. L. Avery, "Recruiting Able-bodied Workmen," Factory, 
Vol. II, pp. 325 + ; G. K. Barrett, "Hiring, Handling, and Firing 
Men," Factory, Vol. IV, pp. 320 + ; G. K. Barrett, "Judging Work- 
men by their Hands," Factory, Vol. V, pp. 355 + ; K. M. H. Black- 
ford, "Rating Men," Greater Efficiency, Vol. Ill, pp. 4-17; 
S. H. Bunnell, " Careful Choice of Men, its Importance," American 
Machinist, Vol. 36, pp. 58-59; J. T. Crabb, "Scientific Hiring," 
The Efficiency Society Transactions, Vol. I, pp. 313-318; H. 



I30 ECONOMICS OF EFFICIENCY 

Emerson, "The Scientific Selection of Employees," The Efficiency 
Society Transactions, Vol. I, pp. 341-344; J. A. Furer, "Hiring 
Men on Basis of Physique and Skill," American Machinist, Vol. 40, 
PP- Si~S4; F. C. Herderschott, "Methods of Selecting Men in 
Business," The National Association of Corporation Schools, 
Bulletin I, pp. 31-45; B. J. Hendrick, "Fitting the Man to his 
Job," McClure, Vol. 41, pp. 50-59; B. J. Hendrick, "Scientific 
Employment Plan," Review of Reviews, Vol. 48, pp. 567-576; 
C. L. Herrick, "How to Select Best Men," Modern Methods, 
Vol. 19, pp. 387-390 ; F. L. Jandron, " Selection and Employment," 
Engineering Magazine, Vol. 45, pp. 562-567 ; J. T. Lincoln, 
"On the Buyingof Labor," Manufacturer's Record, April 25, 1912; 
F. W. Loughran, "The Necessity of Physical Examination of 
Applicants for Employment," The Efficiency Society Transactions, 
Vol. I, pp. 313-318; H. W. Merton, "Analyzing Character by 
Study of the Faces," Business, Vol. 31, p. 270; C. D. Murphy, 
"Man for the Job," System, Vol. 23, pp. 402-410; C. D. Murphy, 
"Living up to Your Employment System," System, Vol. 24, 
pp. 18-25; H. Newton, "Scientific Employment of Men," Scien- 
tific American, Vol. 109, pp. 68 + ; G. Sacerdote, "Is the Right 
Man in the Right Place ?" American Machinist, Vol. 35, pp. 927- 
928; H. A. Worman, "Finding the Right Man," Factory, Vol. I, 
P- 59 + J " To Pick Workers Scientifically," Literary Digest, Vol. 46, 
pp. 703 +. 



CHAPTER VII 

Training 

The industrial revolution ushered in many changes in 
methods of production and transportation. The nu- 
merous inventions which made the industrial Changes 
revolution possible almost completely revo- introduced 
lutionized our industrial system. Concentra- dustnai 
tion of industry, high specialization of labor, revolution, 
increase in the use of capital, rapid introduction of labor- 
saving machinery, and organization of workers followed 
with great rapidity. The progress of industrialism led to 
keen competition, to increasing the size of the produc- 
ing plant, and to assigning an ever-increasing number of 
workers to remain throughout their Hves in the wage- 
earning class. The modern organization of industry 
which followed, and which is based on capital means the 
employment of numbers of workers as wage-earners, 
whose duties and only responsibiHties are the perform- 
ance of the productive tasks assigned to them. Towards 
the end of the nineteenth century a few progressive 
employers realized that a serious mistake had been made 
in neglecting the human hands which ran the Little atten- 
machines. Little or no attention had been tion paid to 
paid to the human element, to the worker ^^^°^- 
upon whom the efficiency of a machine largely depends. 
Employers did not awaken to the fact of their neglect 
until they found themselves seriously handicapped by a 
scarcity of skilled hands which were found necessary to 
obtain greater efficiency from their expensive and highly 
complicated machines. 

131 



132 ECONOMICS OF EFFICIENCY 

The haste to secure industrial development during the 
nineteenth century caused employers to neglect the pro- 
Training of viding of adequate training for workers. Near 
workers the close of the century, the absence of system- 
neglected. ^^^^ training resulted in a scarcity of properly 
trained men, and placed industry in a serious situation. 
It looked as though the lack of trained men would to a 
certain degree block industrial development. The train- 
ing of men did not keep pace with the rapid industrial 
development, due to the fact that men were neglected 
for machines. Employers had concentrated their at- 
tention on improvements in machinery, and had for- 
gotten to lay the basis for future development by train- 
ing workers who were to make the complicated machines 
productive and efficient. 

Employers did not, until the dawn of the twentieth 
century, realize that industrial and commercial su- 
importance P^^ni^-Cy depended in a large measure upon a 
of properly skilled body of wage earners. It cannot be too 
trained strongly emphasized that the great cornerstone 

wor er . ^£ ^^^ future industrial growth depends upon 
a supply of industrial workers, intelligently trained to 
perform their various tasks with the greatest efficiency. 
The industrial country which will successfully compete 
in the world's market will be the one which produces 
with the greatest efficiency. The one absolute essential 
is a properly trained laboring force, one which com- 
bines with general intelligence, the broadest technical 
knowledge and widest technical skill. The advance 
of industry depends in a large measure upon intelligent 
workers, — workers who have been trained so 
worker "^'^^ that they possess sufficient knowledge and 
flexibility of mind to turn readily from one 
thing to something else according to the demands of im- 
provements and of industry. An efficient worker is one 



TRAINING 133 

trained so that he has a broad knowledge concerning the 
technical side of his task, the machines which he works, 
and commercial business in general, other than perform- 
ing the few simple motions which his task may demand. 
The training of men so as to assure trained and effi- 
cient workers for the future is the keynote of industrial 
progress. The backbone of a business enter- importance 
prise, it matters not its character, is its con- of training 
tented and satisfied trained workers. Em- ^^o^^^rs. 
ployers should have it emphasized that skilled workers 
are not born but are made by training. The demand 
to-day, if we are to continue to advance as rapidly in 
the industrial field as we have in the past, is the sys- 
tematic training and education of American workers. 
The complicated machines, systems, and methods found 
in the average industrial plant demand workers, skilled, 
resourceful, and intelligent. The question arises, how 
are we to train American youth to develop a body of 
efficient workers. This is one of the most important 
questions confronting industriahsm to-day. Large sums 
of money have been spent employing experts to devise 
suitable methods of training. Many systems 
have been devised and found supporters. The train 
question as to what is best, in order to produce workers is 
the most efficient workers with the least eco- J^® ^^°^' 
nomic waste has not been unanimously agreed 
upon. American industrial supremacy depends upon 
the solution of this problem, and with so much at stake, 
American genius, which has always solved difficult in- 
dustrial problems in the past, will bring forth a satis- 
factory system of training. The guarantee of a large 
supply of efficient workers will be a great boon to 
American industry, and will be an important factor in 
placing America in the van as the greatest industrial 
country in the whole industrial world. 



134 ECONOMICS OF EFFICIENCY 

For more than a century after the introduction of 
the factory system, the only system of training was the 
The ap- apprenticeship system, a system borrowed 
prenticeship from the domestic system, the previous system 
system. q£ industrial production. The old appren- 
ticeship system dates back to the reign of Queen Elizabeth, 
when a statute declared that no person should exercise 

any trade or "mystery" without serving an 
istics^*^*^'^" apprenticeship of seven years. A boy would 

bind himself to a master, work for him, and 
live in his home as a member of his family. The master 
was his guardian, and was responsible for his physical 
welfare, his moral and intellectual development, as well 
as his training in the art or "mysteries" of his trade. 
During the early years of the system, the master work- 
man bought the raw materials, worked them up into 
finished articles with his assistants, and sold the finished 
goods. The apprentice, who was to become a master, 
was at once both assistant and learner, and received a 
training which it was to the advantage of the master 
to make as thorough as possible. The apprentice and 
his master were usually from the same social class and 
were socially equal. The apprentice looked forward 
to becoming in a few years a master himself, and this 

,. ., ,. anticipation was usually fulfilled. The first 

Limitations. ,. . ^. , •' ., , , , 

umitation was when many guilds succeeded 

in limiting mastership to the families of guild members. 

This restriction made it impossible for many to become 

other than wage-earners. 

As long as the handicraft and domestic systems pre- 

Abusesin vailed, the old apprenticeship system served 

the ap- its purpose fairly well. Nevertheless, during 

prenticeship the domestic system, many abuses arose to 

sys em. ^^ disadvantage of the apprentice. With 

the coming of the journeyman, the close relation which 



TRAINING 135 

formerly existed between master and apprentice became 
more distant. The apprentice during his indenture 
became merely a chattel of his master, and many ad- 
vantages were taken from him. No method of instruc- 
tion was in practice, and the apprentice was supposed 
to learn his trade from observing the journeyman and 
receiving instructions from him. He usually devoted 
most of his time to menial work in no way connected 
with his trade. The master had more important things 
to look after, and paid Httle or no attention to whether 
his apprentices were receiving instruction or not. The 
journeymen cared little about the apprentices, looked 
upon them as coming competitors, and did everything 
to discourage rather than encourage them. Many an 
apprentice served his time, and at the end 
lacked considerable of being a skilled mechanic. ^^ training 
The long term of apprenticeship did not always 
make it possible for the apprentice to master his trade 
and to become a skilled mechanic. The old apprentice- 
ship system was the crudest possible form of imparting 
knowledge and of training. The fear that people would 
be imposed upon if a long service of years was not taken 
in learning a trade did not assure proper training, and 
the average apprentice, after many years of service, was 
frequently poorly equipped for becoming a journeyman. 
Yet with all its defects, apprenticeship furnished for 
centuries the only system of training workers. 

The numerous inventions of machinery during the 
latter part of the eighteenth century led to concentration 
of industry and greater specialization of labor. The 
new changes in the industrial system worked against 
the old apprenticeship system. It was soon discovered 
that it was not necessary to have a worker trained in all 
the elements of a trade in order to attend a machine 
making only one part of an article, which under the 



136 ECONOMICS OF EFFICIENCY 

previous domestic system, was made entirely by a work- 
man. New methods of production made old regulations 
The repeal burdensome. Manufacturers soon began a 
of the Eliza- movement for the repeal of the old Elizabethan 
bethan law. jg^^^ ^^^ finally succeeded in 1814. The repeal 
of the old law did not abolish training by the old system, 
but it continued with more or less of the old rigor. 
In some trades, the old time limit was maintained for 
years, while in others it was lessened. The form of 
Indentures signing indenture papers continued for years 
common after the introduction of the factory system, 
untu 1840. Q^^^ ^]^g qJj legal indentures were common and 
in everyday use as late as 1840. Soon after this, the 
old system of indenture began to decline, and by the 
civil war it had disappeared from many trades. Never- 
theless, to-day it is not entirely out of use, for a few oc- 
casional instances are still found in practice. Although 
the old indenture remains, it is very difficult, if not im- 
possible, to find an instance where the same conditions 
prevail as under the old system. 

By the close of the civil war, the regulations and 
customs of the old apprenticeship system had gone 
Modified i^^to disuse, and a modified form took its place, 
apprentice- This in principle was based upon the old ap- 
ship. prenticeship, but in practice differed from it. 

The trade unions became great champions of appren- 
ticeship, and their object was not to assure a supply of 
trained workers, but to Hmit the number in a 
unions trade, through hmiting the number of appren- 

tices and prolonging the time to learn the 
trade. Frequently, trade unions placed so many re- 
strictions upon apprenticeship that many employers 
refused to be troubled with apprentices. The policy 
from the civil war to the close of the century, as far as 
trade unions were concerned, was to protect their par- 



TRAINING 137 

ticular trades through limiting the number and regulat- 
ing the training of apprentices. Many trades were 
under the absolute control of unions, and this policy 
soon made itself felt in a scarcity of skilled workers in 
particular trades. 

Factories, until 1890, were of medium size, and em- 
ployers had little difficulty in obtaining the number 
of skilled workers which they wished. They 
were willing and usually compelled to obey the mand after" 
dictates of unions. When the rather phe- 1890 for 
nomenal expansion of industry began about the ^^^^^ 
year 1890, combinations, consohdations, and 
an increasing size of the producing plant followed, and 
there began an extraordinary demand for skilled labor. 
The enlarged plant brought with it more compHcated 
and intricate machinery, and as a result, more skill and 
intelligence on the part of workers were demanded. 
The increased demand for skilled workers came suddenly, 
and when employers sought skilled workers, they found 
a great scarcity. The old restrictive policy of trade 
unions in regard to apprentices threatened to xhe opposi- 
check industrial extension. The cry suddenly tion of 
arose for some system of training so as to guaran- "°^°°^- 
tee a supply of skilled men. The unions fought bitterly 
to protect their policy of restriction, and assailed every 
attempt to educate and provide skilled workers other 
than by the old methods. They could see, with their 
narrow vision, nothing but lower wages with an increased 
number of trained men, and did not see that the great 
expansion which would follow would not only take the 
surplus, but increase the demand for labor, and increase 
wages. Three avenues opened for the training of skilled 
workers : firstly, manufacturers to take matters into their 
own hands and to educate their own men; secondly, 
employers and the pubKc working together ; and thirdly, 



138 ECONOMICS OF EFFICIENCY 

the public through properly equipped schools. The 
first gave us the new apprenticeship, the second, coop- 
erative industrial institutions, and the third, various 
varieties of industrial and trade schools. 

Skill means, besides manual dexterity, speed and 
accuracy. The two latter come as a result of careful 
training until habit is formed. Efficiency de- 
meaiiing^ pends upon forming proper habits of perform- 
ance of work, and the elimination of unneces- 
sary movements. It demands the ability to do the 
right kind of thing without being told, and the right 
thing with being told. This comes as a result of careful 
training. 

Efficiency demands that knowledge should take the 
place of guesswork. The old saying "Knowledge is 
Requisites power " is in business changed to ' ' The applica- 
for an ef- tion of knowledge is power." This is a funda- 
ficient mental basis of efiiciency, and demands in 

^°^ ^^' workers more than the manual skill necessary 
in performing a task. No man can become an efficient 
worker who does not understand the scientific principles 
underlying his trade. A skilled worker should know, if 
working with a machine, the intricacies of the machine, 
and should have a knowledge of the material with which 
he is working, and of the commercial side of business. 
An intelligent worker is one of the demands of efficiency, 
and requires a knowledge of subjects alUed to and kindred 
to his particular trade. A training of the 
intemgence i^i^d and of the hands is necessary in our 
struggle for industrial supremacy. Proper 
training is required to develop industrial intelligence. 
Stress in the training of skilled workers should be placed 
upon intelHgence as well as upon manual skill. In- 
telHgence should be developed so that men will work 
with economy of time, material, and effort. 



TRAINING 139 

Industrial progress demands trained minds, skilled 
hands, and the adaptability of workers to the perform- 
ance of their tasks. Proper adaptability is a 
demand of efficiency. The choice of appren- 
tices who are adapted to particular trades is essential, 
and demands the closest attention. It requires close 
observation during apprenticeship. As soon as it is 
found that a boy is not adapted to the trade that he is 
learning, he should not be allowed to continue, his case 
should be studied and if possible a trade chosen for 
which he is adapted. With few exceptions, every one 
should be trained to work so as to Hke it. The habits of 
carelessness, laziness, and slovenliness are so easily ac- 
quired that training is a good antidote to work. With 
proper training, skill, speed, and accuracy are acquired, 
and pride grows in one's work. Emphasis should be 
strongly placed on careful training in the best Training in 
methods of performance of work, so as to ac- best 
quire habits of work which guarantee perform- ™et^ods. 
ance with the greatest efficiency. With careful training, 
and the acquiring of proper habits, appreciation in work 
grows, and this assures a proper attitude towards work. 

Training is of national interest as well as of the great- 
est importance to business men. With properly trained 
workers, the economic wastes arising from in- 

. • . Wastes 

competency and ignorance would be elimi- fromin- 

nated. This would result in the saving of competence 

millions of dollars annually, would benefit ^^^ ^^^°' 

employers by increasing profits, employees by 

increasing wages, and the nation at large by giving a 

higher standard of Hving and a better class 

of citizens. Incompetency and ignorance, the eiT^ate. 

arch-enemies of efficiency, are found lurking 

in every business enterprise. They cause failures, low 

wages, poverty, and suffering, and if their presence is 



I40 ECONOMICS OF EFFICIENCY 

too prominent, prevent industrial progress. Efficiency 
demands that incompetence and ignorance should give 
place to skill, intelligence, and competency. The neces- 
sity of the presence of these quaHties in a working force 
emphasizes the importance of proper training. 

During the last few years, business and railroad cor- 
porations have been taking a greater interest in the train- 
ing of employees. A tendency towards the general 
adoption of some form of apprenticeship is decidedly 
marked in all industries where such a system is practical. 
The apprenticeship or corporation school, as it has come 
to be called, has had a rapid growth and is yearly in- 
creasing in favor. It represents a revival of the old ap- 
prenticeship system in an improved form, and adapted 
to the needs of modern industry. So important was the 
The cor- Corporation school considered as a factor in 
poration industry that in January, 1913, a number of 
school. representatives of the leading corporations pos- 

sessing schools met at New York University, and organized 
the National Association of Corporation Schools. The 
activities of the Association will undoubtedly increase 
the importance of this system of training apprentices, 
and raise the standard of the schools now in operation. 
It seems that the corporation school is destined to be- 
come a favorite system for training employees. 

Corporation schools vary widely in methods of in- 
struction. Many are as yet poorly organized, and are 

not efficiently conducted. Many do not pro- 
insteuctk)n ^^^^ ^^y ^"^^^^^ ^f classroom instruction, but 

encourage or insist upon attendance at pub- 
licly conducted evening classes. An effective appren- 
ciassroom ticeship school should have classroom as well 
and shop as shop instruction. The most satisfactory 
instruction, jj^ethod is to have competent instructors for 
classroom work and for shop work. In large enterprises, 



TRAINING 141 

two sets of instructors should be maintained, but in 
small, the classroom instructors may be also the shop 
instructors. 

Both shop and class instructors should be men of 
practical experience. Shop instructors should be chosen 
from the best skilled men in the laboring force, Quauties 
and should be men who know thoroughly their for capable 
work, and are good instructors. They should ^instructors, 
be familiar with the methods and the practices of the 
plant, and should inspire the confidence of the young 
apprentices in the business. Class instructors should 
be graduates of technical schools, or graduates of ap- 
prenticeship schools with advanced training elsewhere. 
They should be not only competent teachers, but in- 
telligent, moral, and temperate men. Instructors should 
encourage clean personal habits, inculcate right importance 
ideas of work, and exert a wholesome influence of good 
over boys, so that they will become temperate i^istructors. 
and honest men with a high sense of moral duty. Care 
should be taken that instructors are thoroughly sincere 
in their loyalty and interest in the enterprise, and heartily 
cooperate with the management in working for success. 
This is absolutely essential because instructors should 
by their sincerity and earnestness in instructing and in 
dealing with apprentices, arouse their loyalty to the busi- 
ness enterprise, and an interest and enthusiasm in their 
work. This will later assure a hearty cooperation which 
is so essential for success in any business undertaking. 

The selection of apprentices should be made with 
extreme care. A basic test is the physical. A 
thorough physical examination should be Requisites 
made of each applicant, and if any defects are in selection 
found that interfere or would be Hkely to °f appren- 
interfere with his becoming an efficient skilled ^^^^' 
worker, he should not be taken. Sixteen years should 



142 ECONOMICS OF EFFICIENCY 

be the minimum age for applicants, while the maximum 
should not exceed twenty-two. An intelhgence test 

in the way of a written or oral examination is 

necessary. If a boy has reached the age of 
sixteen and is not competent to pass a good examination 
in the common school branches, the chances are against 

his becoming a competent skilled worker. 

Particular attention should be paid to the 
moral character of an applicant. No one should be 
allowed to become an apprentice until a thorough in- 
vestigation has been made into his moral character 
and habits. Character is an absolute essential in the 
making of an efficient worker, and should be carefully 
heeded in the choice of those who are to become in the 

future the backbone of an enterprise. Care 

should be exercised to ascertain a boy's adap- 
tability to the trade which he wishes to learn. Much 
time is wasted, and additional expense is incurred in 
carrying boys for some time who are not adapted to the 
trade chosen, and would never become skilled, competent 
workers. 

The ability which makes one man worth more than 
another in doing a particular work is not acquired alone 

by practice, but is partly transmitted to him 
abmty from his ancestors. If a boy has not latent 

ability to develop, training will not develop 
him into an efficient worker. An important problem 
is the selection of boys who possess the ability necessary 
for development into efficient workers. 

The usual period of apprenticeship is four years, 
and this is sufficient to learn any trade. After the 
Period of probation period is passed, many corporations 
apprentice- insist upon written contracts drawn up be- 
ship. tween them and the parents or the guardians of 

the boys with the boys' consent. A few insist upon 



TRAINING 143 

deposits on the part of the boys or their parents, as a 
guarantee of good faith in fulfilling the period of ap- 
prenticeship. An allowance is usually made for previous 
shop experience. A period of probation from three to 
six months should be given all apprentices, and par- 
ticular attention should be given to weeding out un- 
desirables, and those not adapted to the particular 
trade chosen. 

A decided advantage in favor of the corporation school 
is that apprentices receive pay during their apprentice- 
ship. Many capable young boys must earn or 
help to earn their own Hving, and so a course at ^^i^^^^^*^^^ 
a trade or industrial school is impossible. A 
standard of wages is fixed for apprentices, but this varies 
with corporations. There is usually an increase at the 
completion of each six months of work. The average 
corporation gives a bonus of from fifty to a hundred and 
fifty dollars at the completion of the course. The wages 
paid are usually sufficient to allow a young man to live 
economically. 

Corporation schools are not confined to manufacturing 
enterprises and railroad companies. Many retail and 
wholesale estabhshments have schools, and the -nri,^,^ „„, 
time IS not far distant when banks and financial poration 
institutions will install schools for training schools are 
their own employees. These training schools ^°^^^ 
should not be confused with the numerous educational 
courses carried on by many estabhshments for the 
benefit of their employees. These courses are usually 
conducted at night, but a few corporations have them 
during working hours. Educational courses and lec- 
tures have a beneficial influence, but do not take the 
place of a carefully planned apprenticeship school. 

The training of each apprentice should be along two 
distinct Hnes, the one academic, received in the school- 



144 ECONOMICS OF EFFICIENCY 

room, and the other practical, given in the shop. The 
aim is to teach a boy a trade, and that trade cannot be 

properly learned unless he knows mathematics, 
iratntnl^^ ° mcchanics, and the fundamentals of the science 

which accompanies the trade. Shop man- 
agement, business methods, business English, and fire 
and accident prevention are subjects which should be 
taught every apprentice. Courses and subjects to be 
. ^ . taught in the schoolroom vary with enter- 

Academic. . ^ -, iri -I'-i 

prises, in some, the fundamental prmciples 
of salesmanship and advertising are essential while in 
others they are not. No standard course of study can 
be outlined, because such must necessarily 
vary with business enterprises. The effi- 
ciency of an academic course depends upon the effi- 
ciency of the instructors in outlining those subjects 
which are alHed to the trade and business, and which 
assist in making the apprentices efiicient and capable 
workers. 

Many corporations do not teach academic courses 
in the plant, and have their apprentices attend evening 
Training classes elsewhere. Usually, they are the 
outside the classes Conducted by the public school system 
plant. q£ ^Yi_e city, or by some organization. Boys 

are not paid for attendance, and must attend a certain 
number of hours weekly, usually four. The giving of 
academic training in evening schools, in or outside of a 
plant, is unsatisfactory. Every corporation with a 
school should have it in charge of competent instruc- 
tors, and school work should be given during the working 
day. It should compel attendance in the classroom 
during working time, and the boys should receive the 
same pay for classroom work as for shop. The hours 
of attendance at present vary from plant to plant, but 
the favorite time seems to be from seven to nine a.m., 



TRAINING 145 

with four the average number of hours of classroom work 
per week. Some corporation schools are open through- 
out the year, while others run ten months. 

At least six, and even eight hours of academic instruc- 
tion should be given the first year of apprenticeship, 
and lessened to four or six the second and the third. 
If a boy has had previous academic training, 
allowance should be made in attendance, instruction 
Three years should be sufficient to give train- 
ing in academic work. Apprentices should be under 
the same discipHne as employees in the shop, and it 
should be strictly enforced. The average 
corporation school does not give any ex- tions"'^*" 
amination in academic work, holding that the , 
instructor should know each student's advancement. 
Written examinations give the best results, and with 
prizes for good work, better results may be 
obtained. The average school uses few text- 
books, and the work consists chiefly of written exer- 
cises and problems chosen by the instructor. The best 
results may be obtained by having carefully outlined 
courses with suitable textbooks. The Baldwin Loco- 
motive Company requires apprentices to attend a free 
school two evenings per week for twenty-four weeks 
during the year. Attendance is required for two or 
three years, depending upon academic training before 
entering the plant. No system of reports from instruc- 
tors is required. A boy's written statement made weekly 
that he has attended school for two evenings during the 
past week is accepted by the superintendent. The day 
upon which a boy attends evening school he is excused 
with full pay one or two hours earlier in order to enable 
him to go home for supper, and to prepare for school. 

The number of years of apprenticeship may vary in 
the same plant for different trades. The General Electric 



146 ECONOMICS OF EFFICIENCY 

Company of Lynn, Massachusetts, has the following 
courses : (A) machinists, die and tool makers, four years ; 
Courses of ^ -^ pattern makers, four years ; in either A 
the General or B, graduates of high school may finish the 
Electric course in three years ; (C) iron, steel, and 
ompany. ]-)j-g^ss molders and steam fitters, two years, 
including trial period ; (D) draftsmen and designers 
three years ; (E) electrical testers, three years ; (F) tech- 
nical clerks, two years. This company has student 
courses to which only selected graduates of recognized 
colleges and universities are admitted. Special courses 
of training may be established when required. The pay 
for the different courses is as follows : A and B, ten cents 
an hour for the first year, twelve for the second, fourteen 
for the third, and sixteen and a half for the fourth with 
a bonus of one hundred dollars on the completion of a 
satisfactory course ; C, ten cents the first half year, 
twelve cents the second half year, and fourteen cents 
the second year, with a bonus of fifty dollars ; D and E, 
twelve cents the first half year, fourteen cents the second 
half, sixteen cents the second year, twenty cents the 
third year, with a bonus of seventy-five dollars ; F, twelve 
cents the first half year, fourteen cents the second half, 
sixteen cents the second year, with a bonus of fifty 
dollars. 

Many methods are in practice for academic teaching 
in corporation schools. The most efficient schools have 
Best method carefully outlined courses for the apprentices 
for academic of each trade, or for closely related trades, 
work. Many give only one course, which all appren- 

tices are to attend. Unless all the trades taught are 
closely related, this does not give satisfactory results. 
The most satisfactory system is to have carefully out- 
Kned courses for the different trades taught, and not to 
group, except where trades are so closely related that 



TRAINING 147 

they require practically the same academic and theo- 
retical training. If it is business to have an appren- 
ticeship school, it is business to have it conducted so as 
to obtain the greatest efficiency and best results. Many 
changes should be made in the majority of existing 
schools in order to make them efficient, and give the 
greatest returns for the amount of money expended. 

Shop instruction should be given by special shop in- 
structors, but in many schools there are no regular 
instructors, and the boys are dependent upon 
the shop foremen and the workers for instruc- gtructlon 
tion in their trade, as is the case in the Baldwin 
Locomotive Works. Shop work should be under the 
supervision and the direction of shop instructors, who 
should be the best skilled workers in the plant. Greater 
efficiency is obtained if the instructors are required to 
receive special training for their work. They Essentials 
should be specialists in their trade, and should for good 
make a special study of the various methods of instructors, 
performing the trade that they are to teach. Only 
standard methods should be taught, and these should 
be the best possible for local conditions. A shop in- 
structor should always be on the lookout for better and 
more efficient methods, and if after careful examination 
and testing such are found, they should be made stand- 
ard, and it is the duty of the shop instructor to introduce 
same. 

There is a growing practice to maintain practice shops 
where apprentices do the first part of their shop work. 
The regular commercial product is made 
and only apprentices do the work. Extreme shops*^^ 
patience is essential for getting apprentices 
started in standard methods, and in a way to arouse 
interest in their work. When the shop instructor con- 
siders an apprentice sufficiently developed, a transfer is 



148 ECONOMICS OF EFFICIENCY 

made to the shop proper for the remainder of the 
apprenticeship. No fixed course can be laid out, because 

some apprentices are more apt than others 
ducted"'^' ^^ learning, and do not need so much time 

in certain departments. Each apprentice 
is advanced in the shop as he has, according to the 
judgment of the shop instructor, acquired the necessary 
industrial capacity. Frequently, apprentices who have 
been some time in the shop proper if the quality and the 
quantity of their work are of low standard, are sent 
back to the training room. By competent instruction 
and standard methods, the grade of skilled labor may 
be greatly increased. A great deal depends upon proper 
training and the acquiring of proper habits of doing 
work. On satisfactory completion of the time of ap- 
prenticeship, in school and shop, a diploma or certificate 
is usually given. Apprentices are not compelled to 
remain with the corporation, but are encouraged to 
become a permanent part of the plant organization. 

Graduates of properly conducted corporation schools 
are able to do high grade work, and make not only ca- 
increasing pable and efficient workers, but from their 
favor of ranks, capable foremen and executive officers 
corporation may be chosen. With proper instruction by 

schools. J. i. • i. J. J.1 J.' 

competent mstructors, the average apprentice 
when he becomes a regular employee has usually ac- 
quired loyalty and interest, and at once heartily cooper- 
ates with the management. The training received in 
a shop makes apprentices familiar with shop Hfe, and 
when they become regular workers, no time is lost and 
no additional expenditure is necessary in breaking them 
in as integral parts of the organization. Where a high 
grade of skill is required, and many workers are em- 
ployed, the corporation school is a dollars-and-cents 
proposition. It assures a supply of competent skilled 



TRAINING 149 

workers. A great increase in the number of these schools 
will take place in the near future, and the time is not far 
distant when every large business enterprise will have its 
school for apprentices. Time will remedy many defects 
which are found at present in many of our corporation 
schools. The efficient corporation school has come to 
stay as an important factor in our industrial system, 
and its importance is daily becoming more recognized. 

Due to the fact that corporation schools are only 
possible in large enterprises, they cannot be reHed upon 
to provide the entire industrial training, cooperative 
Where it is practicable, the corporation school industrial 
properly organized and conducted is satis- s<^^°°is- 
factory in the training of apprentices. A system closely 
alHed to this system is that of cooperative industrial 
schools. Academic and theoretical training are given 
in educational institutions while shop training is given 
in producing shops. This is a cooperation between 
employers and educational institutions. The coopera- 
tion is brought about in a variety of ways. A particular 
town or city usually has its own scheme worked out to 
meet local conditions. If properly conducted, the sys- 
tem brings results, although it is not as efficient or satis- 
factory as where the training is given entirely in one 
establishment. 

Cooperative schools differ materially in their methods 
of training. A favorite method is where an apprentice 
spends half his time in school, and half in a 
shop. The usual arrangement in half-time training^ ° 
schools is to have two apprentices to a job, 
and each to spend alternating weeks in school and in 
shop. In some schools all of the first year is spent in 
school work, and shop work does not start 
until the second year. Examples of the half- 
time system are the University of Cincinnati, Fitchburg 



ISO ECONOMICS OF EFFICIENCY 

High School, Fitchburg, Mass., Technical High School, 
Providence, R. I., and Lewis Institute, Chicago, 111. 
A second form of the part-time system is where the ap- 
prentice attends school much less than half time, usually 
being excused from regular work in the shop a few hours 
a week to attend some educational institution where 
subjects correlated with the trade are taught, as the 
FrankHn Union, Boston, Mass., Mechanics' Institute, 
Rochester, N. Y. ; and a third is where attendance 
at school is only during slack time as in the Horace 
Mann and James Otis Schools in Chicago, 111. Ap- 
prentices are usually paid for shop practice, but not for 
attendance in school. 

The cooperative system is a decided improvement 
over the ordinary industrial school, but is not as efficient 
Cooperative ^^ the corporation school. Apprentices work 
us. corpora- in a producing plant, and get acquainted to a 
tion schools, certain degree with shop practice. The aca- 
demic training is usually better than in the corporation 
school, but the shop is not nearly so efficient. The ap- 
prentices in the shop are usually supposed to get their 
instruction from foremen or skilled workers. Some- 
times school instructors visit shops and direct the 
work of boys. This arrangement will not produce the 
spirit of loyalty and cooperation as will having all boys 
under special shop instructors. With special pains to 
improve shop instruction, and assure the teaching of 
standard methods by having the boys under special ex- 
perts as shop instructors, the cooperative schools may 
be greatly improved and made more efficient. 

Many kinds of evening schools are in operation. 
Industrial having as their aim the improvement of indus- 
evening trial education and training. Evening schools 
schools. were first intended to give workers a rudi- 
mentary education. Later, the need of some correla- 



TRAINING 151 

tion between academic and shop practice made itself 
felt, and the continuation school developed. Courses 
were given in subjects related to trades, as _ . . 
mechanical drawing, shop arithmetic, indus- 
trial chemistry, etc. No provisions were made for 
practical training as preparation for a trade, or for 
special advancement in a trade. As a result of this 
demand, evening vocational and evening trade schools 
came into existence. Evening industrial schools may 
be grouped under three heads, continuation, 
vocational, and trade, and may be public or 
private. Industrial evening schools, in giving employees 
knowledge of subjects related to their trades, perform 
an important work in promoting industrial education. 
They have a drawback in that instruction is given in 
the evening, and is not sufficient to give the training 
necessary to make skilled workers. As supplementary 
aids in industrial education, they perform an important 
work, and materially assist in giving academic and 
theoretical training. 

Industrial training in public schools is a recent de- 
velopment, and it is only since 1900 that it has become 
general. The universal demand for better ijujust^ai 
trained workers has led recently to much im- training in 
provement in industrial training. Many pub- public 
lie and private institutions have been organ- 
ized to better equip boys and girls for their life's work, 
and many old institutions have added courses for that 
purpose. The question of industrial training is attract- 
ing much attention from educators, business men, and 
legislators, and during the next few years many im- 
provements may be looked for. Industrial, trade, 
manual training, and vocational are names given to 
schools for training and better equipping boys to be- 
come better and more efficient workers. 



152 ECONOMICS OF EFFICIENCY 

Industrial is the name given to those schools which 
train in the general aspects of industry, and do not 
Character- speciaKze their training to the extent of teach- 
istics of an ing specific trades. Many do not differen- 
industriai tiate between industrial and trade schools, 
^'^ °° ■ but they are distinct. An industrial school 

is not designed to teach any one trade, but teaches what 
is necessary for the practical working of trades. In- 
dustrial schools serve as an important factor in prepar- 
ing boys to be better equipped when they begin their 
apprenticeship. Many boys leave pubhc school at 
fourteen, and few trades are open to them as appren- 
tices until sixteen. Industrial schools may perform 
an important function in extending the time of these 
boys in school, and making them much better equipped 
Industrial ^^ become skilled workers. Our educational 
courses in systcm could be materially changed to the 
grammar benefit of the American people by having 
sc 00 s. industrial courses in the last year or two of the 
grammar schools. Many boys leave grammar school 
and become unskilled workers ; if they learn any trade, 
it is usually poorly learned, and many remain unskilled 
throughout their lives. The industrial school is best 
suited to prepare boys for their vocations by giving them 
training during the gap, as it were, between leaving 
grammar school and entering a trade ; that is, from four- 
teen to sixteen years. Pubhc industrial schools may 
prove of great service in teaching those subjects closely 
related to the trades, and by so doing make young boys 
better equipped to become apprentices. 

The trade school is for the purpose of giving the train- 
ing for trades which was acquired formerly 
schools under the old apprenticeship system. The 

trade school of the old type simply taught a 
trade, and the student spent practically all of his time in 



TRAINING 153 

shop work. The trade school of the modern type gives 
some academic instruction in subjects allied to a trade 
as well as teaches the trade itself. In 1907, the first 
pubHc trade school came into existence, when the city 
of Milwaukee took over the Milwaukee School of Trades, 
a private institution, and before that time, trade schools 
were private institutions. Since 1907, many Require- 
public trade schools have been opened in dif- ments for 
ferent cities. A properly organized, equipped, ^^^^^'^y- 
and conducted trade school gives satisfactory results. 
A trade school should give academic training as well as 
practical, and should be equipped with the best possible 
equipment for the teaching of trades. The backbone of 
success is the instructing staff. Care should be exer- 
cised in ascertaining the best methods for performing 
the different movements in learning a trade, these 
should be standardized and taught. If some system 
could be evolved for standardizing movements, so that 
only the best were reduced to habit-form, a great 
advancement would be made in ehminating waste. 
Strict supervision is required, and the same 
carefulness should be exercised in working as of"work^^°° 
if working on goods for sale. Usually the 
output of a school goes to the scrap-heap and is not sold 
in the market. Learners are Hkely to become careless 
and slovenly in their work, and this should not be toler- 
ated. Instructors should insist that in the acquiring 
of the best methods and best habits, speed is heeded. 
Several manufacturers complain that boys who are 
taught in trade schools are slow and do not possess 
speed. The acquiring of speed is an absolute essential 
in forming habit. Properly equipped trade schools 
with efficient instructors teaching standard methods 
are important factors in acquiring efficiency. They 
cannot take the place of corporation schools, but after 
these, are the most efl&cient means of training. 



154 ECONOMICS OF EFFICIENCY 

Trade preparatory schools are meeting the demand for 
some system of traming for boys from fourteen to six- 
Trade pre- teen years. They form an important factor 
paratory in our industrial training and should receive 
schools. more attention in the future. They teach the 
elements of a trade, the fundamentals of industry, and 
some practice. Their purpose is to give a training that 
prepares students to enter trade and corporation schools. 
Manual training has received considerable attention 
in our country. It began with secondary schools, and 
Manual later courses were given in the elementary 
training schools. The aim is not vocational, that is, 
schools. ^Q equip a boy directly for industrial pursuits, 
but is cultural. Statistics show that a very small per- 
centage of graduates of manual training schools enter 
trades. Manual training is beneficial in giving better 
equipment for the industrial pursuits, and in furnishing 
boys a wider outlook in choosing a vocation. 

The vocational school is an industrial school for 

the purpose of preparing boys for vocations. Its 

aim is the giving of training for the purpose 

schools" ^^ directing a pupil toward a trade, or other 

manual occupation, rather than as a part of a 

direct and intensive preparation for skilled workers. 

The course is usually two years, open to graduates of 

elementary schools, and to those who have reached the 

age of fourteen and are prepared to undertake the work. 

The purpose is not to turn out skilled workers, 

but to prepare pupils to be better equipped to 

enter trade and corporation schools. Vocational schools 

do not supersede high schools, but offer inducements to 

keep boys at school until the age when they may enter 

trade and corporation schools, and to give them 

a practical and an academic training that will 

be of service to them in their later training. The voca- 



TRAINING 155 

tional school is a necessity, and its place is absolutely 
necessary in the training of more efficient industrial 
workers. Every city in the United States should have 
these schools, and they should be equipped and conducted 
at pubKc expense. They have come at an opportune 
time^ and their importance will soon be so recognized 
that they will be found in every city in the United 
States. 

"We are getting only 50 per cent of the ability of the 
workmen in our factory," said the foreman of a large 
plant. "How to get ninety per cent and keep ^^^^ ^ g_ 
their goodwill is the all-important question." tems for 
An important question to every employer is training 
how to increase the efficiency of his men. ^°^ ^^^' 
Efficiency has awakened employers to many wastes in 
the old methods of doing things. One of the greatest 
wastes is that of misdirected energy, and this introduces 
the question of training. Training is a requisite in the 
ehmination of wastes due to misdirected energy. The 
question of training includes school and shop education. 
How to furnish industry with the best trained workers 
is an important question which this country must solve. 
The question of preparation is important, and to solve 
this problem, vocational schools are a necessity in our 
educational system. They should be equipped and con- 
ducted at public expense, and their value in preparing 
young boys for trades cannot be too strongly empha- 
sized. Practical training for trades should be given 
in trade and corporation schools. Properly conducted 
corporation schools are best for the training of efficient 
workers and have become a permanent fixture in the 
efficiency movement. Trade schools will continue a 
strong factor in training, but they should be equipped 
and conducted at public expense. They demand extreme 
care and supervision to bring them to a high standard. 



156 ECONOMICS OF EFFICIENCY 

Efficiency of the training in trade and corporation schools 
depends upon instructors and methods. The crucial point 
is the following of standard methods until habits are 
formed. Vocational, trade, and corporation schools are 
the chief systems of industrial training. The numerous 
varieties found of industrial schools, both day and evening, 
should not be criticized, because each has its place in 
industrial education, and each is performing its task, of 
better equipping industrial workers for doing more effi- 
cient work. 

QUESTIONS 

1. What is the importance of properly trained workers in our 
industrial system ? Why was training neglected during the 
nineteenth century ? 

2. Give the characteristics of the apprenticeship system. 
What were the abuses of that system ? 

3. In what way did trade unions control apprenticeship during 
the latter part of the nineteenth century ? Account for the oppo- 
sition of trade unions to industrial education. 

4. What wastes are due to incompetence and ignorance? 
How may these wastes be eliminated ? 

5. Give the evolution of the corporation school. Why has it 
become an integral part of our industrial system ? 

6. What are the requisites for an efficient corporation school ? 

7. What should be the characteristics of capable instructors? 

8. What precautions should be taken in the choice of appren- 
tices ? Why ? 

9. What is the purpose of the practice shop ? What precautions 
should be taken to make it efficient ? 

10. What are cooperative industrial schools? What are the 
essentials for a good school ? 

11. Give the evolution of industrial training in public schools. 
What are the characteristics of the industrial school ? 

12. What is the function of the trade school in our industrial 
system ? What are the requisites of a good trade school ? 

13. What are trade preparatory schools? 

14. What is the purpose of manual training schools? What 
requisites are necessary for a good school ? 

15. What is the place of the vocational school in industrial train- 
ing ? Account for its importance. 



TRAINING 157 

REFERENCES 

Books 

Adams and Sumner, "Labor Problems," pp. 433-460; H. 
Beckwith, "German Industrial Education," United States, Bureau 
of Education, Whole Number, 529; G. L. Bolen, "Getting a Liv- 
ing," Ch. XI; W. F. Book, "The Psychology of Skill"; R. A. 
Bray, "Boy Labor and Apprenticeship," Chs. I, II, V, VI; F. T. 
Carlton, "The History and Problems of Organized Labor," Ch. 
XVII; F. T. Carlton, "The Industrial Situation," Ch. IV; F. T. 
Carlton, "Education and Industrial Evolution," Chs. VII, X; 
J. R. Commons, "Labor and Administration," Ch. XX; E. G. 
Cooley, "Vocational Education in Europe"; L. M. Gilbreth, 
"The Psychology of Management," Ch. VIII; P. H. Hanus, 
"Beginnings in Industrial Education," Chs. I-V; "Industrial 
Education," American Federation of Labor, 1910; "Industrial 
Education in Germany," United States, Bureau of Education, 
Bulletin, 1913, No. 54, pp. 1-75; A. H. Leake, "Industrial Edu- 
cation"; Massachusetts Bureau of Statistics of Labor, "The 
Apprenticeship System," Report, 1906 ; Massacliusetts, Commis- 
sion on Industrial and Technical Education, Report, 1906 ; M. R. 
McCann, "Fitchburg Plan of Cooperative Industrial Education," 
United States Bureau of Education, Bulletin, 1913 , Vol. 50, 
pp. 1-28; J. M. Motley, "Apprenticeship in American Trade 
Unions"; H. Miinsterberg, "Psychology and Industrial 
Efficiency," Chs. IV, V, XIII, XIV; New Jersey Commission 
on Industrial Education, Report 1909; New York, Bureau of 
Labor Statistics, Report 1908 — Part I, "Industrial Training"; 
H. S. Person, "Industrial Education"; The System Co., "How 
Scientiiic Management is Applied," Ch. VIII ; United States, 
Bureau of Labor, "Industrial Education," 1911; C. D. Wright, 
"The Apprenticeship System in its Relation to Industrial Edu- 
cation," Bulletin of the United States, Bureau of Education, whole 
number, 389. 

Articles 

M. W. Alexander, "Training of Men," Engineering Magazine, 
Vol. 39, pp. 100-102; L. P. Ayers, "Factors affecting Industrial 
Education," Elementary School Teacher, Vol. 14, pp. 313-318; 
G. M. Basford, "The New Apprenticeship," American Machinist, 
Vol. 34, pp. 321-322 ; W. Bowden, "Education for the Industrial 



iS8 ECONOMICS OF EFFICIENCY 

Advance of the Wage Earner," Education, Vol. 34, pp. 69-77; 
H. Diemer, "Factory Organization in Relation to Industrial Edu- 
cation," Annals American Academy of Political and Social Science, 
Vol. 44, pp. 130-140; C. E. Dounton, "Training Mechanics and 
Engineers," American Machinist, Vol. 36, pp. 85-88; W. B. 
Hunter, " Educating for Efficiency," Human Engineering, Vol. I, 
pp. 241-248; J. F. Johnson, "Commercial Education," The 
Efficiency Society Transactions, Vol. I, pp. 187-193 ; G. Keschen- 
steiner, "Technical Day Trade Schools in Germany," School 
Review, Vol. 19, pp. 295-317; P. Kreuzpointer, "Industrial 
Education, its Relation to Commerce and Industry," Southern 
Machinery, Vol. 28, pp. 43-44; P. Kreuzpointer, "New Standard 
of the Present Day Industrial Education in Europe," National Edu- 
cation Association, 1911, pp. 740-747; L. M. Leavitt, "Need, 
Purpose, and Possibilities of Industrial Education in the Elemen- 
tary School," Elementary School Teacher, Vol. 13, pp. 80-90; 
H. E. Miles, "Training the Apprentice," Proceedings of the First 
Cooperative Safety Congress, pp. 211-218; J. A. Pratt, "Modern 
Apprenticeship Training," National Education Association, 191 2, 
pp. 955-965; E. G. Payne, "How Industrial Education is Con- 
trolled in Germany," Survey, Vol. 30, pp. 405-407 ; C. A. Prosser, 
"Facilities for Industrial Education," National Education Asso- 
ciation, 191 2, pp. 1 196-1202 ; G. A. Stephens, "The New Appren- 
ticeship," Journal of Political Economy, Vol. 19, pp. 17-35; 
Thomas and Dennison, "Showing Employees how to Work," 
Factory, Vol. 9, pp. 5154-; A. D. Williams, " Modern Apprentice- 
ship," Sibley Journal of Engineering, Vol. 26, pp. 176-180; 
C. H. Winslow, "Machinist Trade Apprenticeships," American 
Machinist, Vol. 36, pp. 142-146; E. M. WooUey, "The Training 
of Workmen," System, Vol. 19, pp. 468-476. 



CHAPTER VIII 

Habits 

The great countries of the world are competing with 
one another for industrial supremacy. Industrial expan- 
sion depends in a large measure upon efii- industrial 
ciency. Accordingly, every factor which has expansion 
a bearing upon efficiency is of the utmost im- ^^^ . 
portance to business men. Of all the factors, ^ "ency. 
the human is recognized as the most important, and indus- 
trial progress and development depend more upon it 
than any other. An important question to solve is how 
to attain the greatest efficiency from human hands and 
bodies. This demands the study of many factors which 
until recently business men thought were of little use to 
them, either in the building up of a business or in the 
acquiring of profits. One of the most in- Habit, a 
teresting and important of these factors is factor in 
habit, and the more careful study that is made ®ffi"ency. 
of it, the more importance is attached to its place in 
efficiency, industrial development, and progress. 

Human efficiency depends largely upon the rapidity 
and the promptness with which workers are able to per- 
form their tasks. In general, tasks become 
accurate and rapid in the degree to which fromhabit*^ 
workers are able to reduce their performance 
to habits. It stands to reason that the most efficient way 
to use a man's energy is to allow him to follow habit in 
thought and in action. It is surprising to a person when 
he finds out how rapidly he can do habitual acts, and how 

159 



i6o ECONOMICS OF EFFICIENCY 

slowly he performs a task to which he is compelled to 
give specific attention. Habit-formation is the greatest 
labor-saving device in industry. Through a proper use 
of habits, the efficiency of men in fundamental operations 
may be increased from 40 to 400 per cent. 

Habit has been defined as a condition of body or mind 
or both, which has been estabhshed by repetition of an 

act or mental process or both. It is an indi- 
oAabir° vidual characteristic and varies with each 

person. Some habits make life safer and more 
efficient, whilst others sap vitality, dry up sources of 
energy, and work toward inefficiency. 

A person should not confuse habit with instinct, be- 
cause the two terms are not synonymous but different. 

Habits are acquired, while instincts are in- 
habiT*^ "*■ herent. Instincts are innate tendencies which 

are born with men, and have a profound in- 
fluence on the development of actions. Animal fife is 
completely controlled by instinctive impulses. The 
squirrel hides his nuts and the fox buries his food. Each 
bhndly provides against future want. The number of 
instincts in man is far greater than in animals. Instincts 
are fixed and defy education and training. Fear, anger, 
Character- curiosity, jealousy, rivalry, and constructive- 
istics of ness are a few of our instincts. All through 
instincts. ji^g^ instincts serve as a background for the 
acquired capacities. They determine action when ex- 
perience has failed, and often conflict with acquired 
knowledge when that knowledge has been fully developed. 
Instincts are characteristics of a whole class, while 
habit are acquired during a Hfetime, and vary with 
individuals. 

The formation of habit is directly confined to the 
nervous system. The nervous system is very plastic, and 
every impression makes its nerve path. Every repeti- 



HABITS 161 

tion of the original impression simply deepens the nerve 
paths already made. Each repetition of a past action 
or famihar impulse enables it to travel with 
less friction along the trodden path. One of t^e nerv- 
might liken what occurs to the process by ous system 
which a path is made across a meadow. The ^J^^^^ 
first person may have selected his route for no 
cause whatever, and his course may have been straight 
or devious, but he left a mark in the down-trodden grass 
which the next person to cross the field is likely to 
follow. Presently the grass is worn away, and there- 
after every one follows the beaten path. 

The first formation of a nerve course is not strictly 
haphazard as in the case of the wayfarer's first path 
across the meadow. The nervous system is Detemdna- 
part of a Hving organism, and that organism tion of 
can itself in a large measure determine whether °^'"^® paths, 
a movement shall be repeated or not. The organism 
itself largely decides which pathway shall first become 
estabHshed. Nevertheless it is true that when paths of 
nervous activity are estabHshed, they tend ever after to 
remain and be used. Every time an act is performed 
there is a deepening of the nerve rut. The two important 
factors in habit formation are that nerve currents tend 
to follow those paths which have been previously estab- 
Hshed, and that the organism itself plays a governing 
part in first choosing, and later deciding, what paths shall 
become fixed. 

Eating, walking, talking, and all important actions of 
everyday Hfe are habits in whole or in part. The morn- 
ing toilet is a habit. You wash, strop your 
razor, shave, brush your teeth, and comb your ofh^^^^ 
hair without being conscious of what you are 
doing. When an action becomes a habit, it seems to 
dispense wholly with conscious guidance. A pianist can 



i62 ECONOMICS OF EFFICIENCY 

play familiar airs and carry on a conversation at the 
same time. A banjoist can play without looking at the 
strings and talk at the same time. We may not be 
entirely obhvious of our muscular activities but to all 
appearances we are entirely preoccupied with other 
things, and still are able to carry on habitual acts. 

Repetition is an imperative demand in habit forma- 
tion. The only way to master an action is by repeating 

it at regular and frequent intervals. Each 
req^site*'^* repetition deepens the nerve paths already 

made and causes travel with less friction. 
The conversion of action into habit makes other demands 
than repetition. Knowing how to perform an action, 
abihty to do, and willingness to do, are essentials in habit 
formation. The mind should be on the performance of 
the task, and the repetition should be identical. No 
variations should be allowed. Again, confidence in one's 
abiUty to eventually achieve success in making an action 
a habit is an essential prerequisite. Failure frequently 
follows, or mastery is unnecessarily delayed, as a result 
of lack of confidence in one's ability to achieve success. 
Paying heed to the foregoing demands makes habit for- 
mation comparatively simple and rapid. 

As a result of habit, many acts are performed auto- 
matically. A machinist does not stop to think what is 
Habits re- the next move to make, but it is made with- 
lieve brain out any conscious attention. When a pianist 
of work. jg playing the piano, the finger movements 
and the reading of notes are carried on with a minimum 
of thought. Habits relieve the mind from paying atten- 
tion to the details of successive steps of an act. While 
the performance of an act is being reduced to habit, a 
person's whole attention should be given to directing its 
performance. As soon as habit is formed, work is done 
automatically, and attention may be turned to other 



HABITS 163 

things. In the Bureau of Engraving at Washington, I 
saw a young lady carry on a conversation and count 
sheets of stamps with great rapidity. 

Skill, dexterity, and speed in the performance of work 
are based on habit. Work becomes accurate as well as 
fast in the degree to which we are able to Rggui^s of 
reduce its performance to habit. No great proper 
speed is possible as long as attention must be habits of 
given to each succeeding step of a task. ^°^ 
Speed of action should not be confused with hurried 
action. Speed resulting from habit is never hurried, and 
mistakes and inaccuracies are rarities, whereas they 
abound in hurried action. Speed, precision, and accu- 
racy result only from habit. Business men usually look 
upon habit as detrimental to efhciency. They invaria- 
bly associate habits with something undesirable, and 
regard their possession as a handicap to good work. 
Little do they realize that the very basis of efficiency is 
habit, and that a careful study of habit and its proper 
formation are absolutely necessary and essential. 

In the formation of habits, oftentimes a severe test 
is that of overcoming the sluggishness and the inertia 
of the brain. It frequently requires a hard Difficulties 
struggle to apply concentrated thought, and inhabit 
regular and constant apphcation until habit is formation, 
formed. Determination and perseverance are in many 
cases given severe tests. Very frequently discourage- 
ment follows the first few repetitions, and failure results. 
Every one should bear in mind the old saying, "If you 
don't succeed at first, try again." When everything 
seems hopeless, further repetition will soon give encour- 
agement. The task gradually becomes easier, and even- 
tually precision, accuracy, and speed are obtained. One 
then wonders how a task so easy to accomplish caused 
so much trouble and discouragement at the beginning. 



i64 ECONOMICS OF EFFICIENCY 

Too great emphasis cannot be placed upon the neces- 
sity of identical repetition of movements in the forma- 
importance ^ion of habit. Identical repetition not only 
of identical deepens the nerve paths to the extent that 
repetition, enables response to travel with less friction 
along the well-marked grooves, but it guarantees, when 
habit is formed, no deviations from the established move- 
ments in the habit. When movements are not identical^ 
other nerve paths are formed. If many repetitions of the 
exceptions occur, their nerve paths become more and 
more indented or grooved. So when the habit is formed, 
in place of one well-grooved path for the response to 
travel, there is one which it is necessary to follow to get 
proper performance, and one or more, more or less deeply 
indented, which it may follow. These exception nerve 
routes are alert in their efforts to direct the response to 
The except their courses, and to divert it from its true 
tion nerve course. The exceptions usually put in their 
route. appearance at the very time when the worker 

is most anxious that they should not. Their appearance 
on one or more occasions frequently encroaches upon 
the worker's reHability and faith in his accurate perform- 
ance of a task, and has a tendency to limit his speed. 
With the additional strain on the brain from watching 
for the exception, more fatigue is experienced, and fre- 
quently work is more exhausting with less speed than it 
is with greater speed and perfect repetition of a habitual 
task. Efficiency with its demand of accuracy, precision, 
and speed does not tolerate any exception in habit- 
formation, and repetition should be accurate and identical. 

Efficiency demands industry as well as knowledge and 

skill. A working force, even if it be skilled, 

efficiency^*' Cannot be efficient unless it is industrious. 

Industry and indolence are largely matters 

of habit. Industry is the fundamental basis of skill and 



HABITS 165 

dexterity, and without it, the latter are of little service. 
Boyhood and youth are the ages for the formation of 
proper habits of industry. Fathers and mothers little 
realize that they are largely to blame for a great amount 
of the indolence in the world. If they would take more 
pains to teach their children to be industrious importance 
what a boon it would be to industrial society, of habits of 
Youths who are allowed to do as they please "^^^^^try. 
soon form the habit of loafing. Work becomes distasteful, 
and only slight exercise causes discomfort. Indolence is 
estabhshed, and each successive year sees it more firmly 
rooted. After years of idleness, the habit of indolence 
is so firmly established that it is impossible to break 
away, and as a result, thousands spend their Hves in 
indolence. What a blessing it would be to society in 
general, and to industry in particular, if this vast indo- 
lence could be abolished and we could have industry in 
its stead. The time for the formation of habits of in- 
dustry is youth, and great care should be exercised to 
see that such habits are then formed. With habits of 
industry firmly rooted, skill, dexterity and speed are 
more easily attained. It cannot be too strongly em- 
phasized that the efiicient man is the one who is indus- 
trious as well as possessing knowledge and skill. One of 
the factors underlying our future industrial expansion, 
and essential in our struggle for the world's industrial 
supremacy, is efficiency, and one of the great bulwarks 
of efficiency is habit of industry. Fathers, mothers, and 
teachers should reaHze that one of their chief duties is to 
instill into children proper habits of industry. 

Visit a plant and watch the movements of the work- 
men, and you will see many unnecessary movements in 
the performance of every task. The habits of the aver- 
age workmen are not such as enable him to do his work 
in the most economical and efficient manner. Most men 



i66 ECONOMICS OF EFFICIENCY 

are allowed to choose their own movements in the per- 
formance of work. Habits are formed with no thought 
Formation ^^ ^^ ^^^ attaining of efficiency. Many habits 
of habit in cause the expenditure of much unnecessary 
common energy, and not only that, but they entail a 

practice. , i r j.* • r 

great loss of time m performing unnecessary 
movements. I once watched a mason at work, and 
wondered why he struck each brick at least two or three 
times, when frequently it was not needed. On inquiry, 
I was told that it was habit, and that was the only reason 
given. The time and the energy given to the extra 
tappings, if saved, would have enabled him to lay many 
more bricks in a day without an extra expenditure of 
energy. 

It is only necessary to visit two or three factories to 
reahze the vast amount of time and energy wasted from 
Wastes due using unnecessary movements in work. How 
to poor much more efficient would a man become 

habits. j£ |.]^jg waste were eliminated, and the energy 

saved for the performance of more efficient work. The 
blame for the presence of the many unnecessary move- 
ments in the performance of work cannot be placed 
upon the worker because he usually does the best he 
can under the circumstances, but upon the employer for 
not taking proper care and pains in the implanting 
of proper habits for the performance of work. The 
old method of expecting a worker to observe how 
work is done, and to use his own judgment in choosing 
movements, and repeating these until habit is formed, 
should give way to the demands of efficiency where the 
employer chooses the best method for the performance 
of work, and trains employees in it, until habit is 
formed. 

An important problem in business is the elimination 
of waste in its many varied forms. One of the greatest 



HABITS 167 

wastes is that of misdirected energy, and in this case, 
a large part may be eliminated through the formation of 
proper habits. There is a right way of learn- ^,. . . 

r ^,1 c r 1 1 Elimination 

mg the performance 01 work and a wrong, ^f wastes of 
Two workmen may obtain the same results, energy 
but one by unnecessary movements and round- ^^-Y^^ 
about methods may take not only much longer, 
but may consume much more energy, than the other. Fre- 
quently in observing two men perform similar work, you 
would declare that one would do a third more Examples 
than the other, but on inquiry, you are surprised of wastes of 
to find that the larger amount of work is per- ^^^^sy- 
formed by the latter. The movements of the one 
are much faster and his efforts much more strenuous. 
Carefully study the movements of the two. One will 
take three movements to do a certain part of the work 
while the other takes two. One, in short, has acquired 
as a habit a number of unnecessary movements, while 
the other has not. The new efficiency movement has 
turned the attention of employers to this waste and to its 
study in order to prevent its occurrence. The remedy 
lies in a study of necessary movements for the perform- 
ance of work, ascertaining those best adapted to the 
attainment of the desired result, and training workers 
so that they acquire proper habits of work. 

After proper movements have been ascertained, the 
next essential is training. Careful training is one of the 
great demands of efficiency. The workers x^e im- 
should be carefully taught in the exact methods portance 
and movements necessary, and care should be °^ traimng. 
taken that these are exactly repeated until habits are 
formed. The acquiring of standard methods and move- 
ments is of little use unless they become habits of 
workers in doing work. This demands careful train- 
ing, and instruction in the understanding and in the 



i68 ECONOMICS OF EFFICIENCY 

use of the standards. Competent instructors should 
take charge of the workers while reducing standard 
methods and movements to habits. They should in- 
struct and carefully supervise while workers are learn- 
ing to make certain that only standard methods and 
movements are used. This avoids exceptions creeping 
in, and insures greater efficiency when habits are formed. 
The great aim is to train men so efficiently that they 
form the habit of doing the right thing at the right 
time without stopping to think. If proper standard 
methods and movements are ascertained, and workers 
are trained in their use, much of the waste of human 
energy would be eUminated, and an abundant supply of 
hitherto wasted energy would be made available for 
more productive work. 

The efficiency of the skilled trades could be greatly in- 
creased by paying attention to motion study and train- 
How to ing. Take, for example, brick laying. An ap- 
increase prentice is supposed to watch the laying of 
ciency of brick and learn the movements necessary. No 
the skilled attempt is made to instruct or assist him in 
trades. learning the proper movements. The result 

is that habits are formed and include many unnecessary 
movements. Mr. Gilbreth has made a special study of 
brick laying, and has by careful observation and experi- 
mentation discovered the movements necessary to get 
the greatest efficiency in the work. If these movements 
were made standard, and their compulsory use enforced 
upon all apprentices and bricklayers, it would greatly 
increase the efficiency of the bricklayer, and would neces- 
sarily bring an increase in wages. If the same were done 
in all trades, it would greatly benefit employees and em- 
ployers aHke. Efficiency demands standardization of 
methods and movements, and the time is not far distant 
when these demands will be fulfilled. 



HABITS 169 

Two classes of workers should be considered in training 
in efficient habit formation ; first, the apprentice, and 
secondly, the one who has learned his trade. Q^gggg 
Each should receive special consideration, considered 
What would be satisfactory with the former inhabit 
may prove a failure with the latter. With the °^^'^ ^°°' 
apprentice, when standard methods and movements have 
been ascertained, the acquiring of them is simply a matter 
of instruction and supervision. Little objec- . 

ADDrCIltlCG 

tion is usually found by the young apprentice 
in getting him to follow instructions. No factor in effi- 
ciency demands more careful study than the training of 
apprentices in acquiring efficient habits, and yet this has 
been woefully neglected in the past. Em- 
ployers should be made to realize that effi- worker, 
ciency depends in a large measure upon proper 
methods of doing things, and when this is accompHshed, 
they will devote time and money to acquiring proper 
methods and training to obtain proper habits. Every- 
thing that adds to profits interests employers, yet it is 
only recently that a few progressive employers are realiz- 
ing that proper habits add to profits by assuring greater 
efficiency. 

A manufacturer employing several thousand em- 
ployees once remarked that standard methods and move- 
ments in doing work were satisfactory in train- y;^ 
ing new apprentices, but absolute failures changes 
when they were forced on employees who had ^^^ ^°^ 
formed habits of doing their work, and that ™ 
he had not introduced efficiency methods in habit forma- 
tion because he was afraid of friction on the part of the 
older employees. The result is that the old haphazard 
wasteful methods are in operation, and it is not likely 
that in the near future any attempt will be made to 
eliminate the great wastes resulting from misdirected 



170 ECONOMICS OF EFFICIENCY 

energy. The greatest opposition to new standard 
methods and movements, it must be admitted, comes from 
Why do ^^^ employees. Each worker follows naturally 
employees the habit groove in both thought and action, 
oppose Xhe nerve paths are usually deeply grooved, 

anges ^^^ ^-^^ Opposition to forming new nerve paths 
is deep seated. Change of habit means a complete 
change in certain parts of the nervous system. One 
does not wonder at the great resistance in every case to 
change of any kind. No new habit can be obtained with- 
out a hard struggle, and demands for some time increased 
attention, and a considerably increased outlay of mental 
and physical energy. With a young worker, who has 
recently acquired his habits of doing work, habit changes 
are not so difficult, but with old employees, who are 
slaves to their deep nerve ruts, a radical change is almost 
an impossibility, while only a slight change means a 
great amount of extra effort. 

Patience and diplomacy are demanded in every case 
where the introduction of new ways of doing things is 
^ . .. desired. The use of drastic measures in mak- 

Requisites . . i • r -i n^-i 

for the in- mg changes mvanably results m failure. I he 
troduction £rst essential is the cooperation of the working 
o c anges. f^j-^^g^ ^^^^ ^]^^g demands that the workers be 
taken into confidence by employers. Few realize this, 
and they wonder why they fail in the introduction of 
changes. The importance of changes in habit should be 
made clear, and proper incentive should be given to make 
the changes. The one great incentive with every wage 
earner is increase in pay. It should be emphasized that 
the increased efficiency which will come from the changes 
will not demand extra effort after habits have been 
formed, and will increase wages. 

The saving of energy by eliminating unnecessary move- 
ments \vill result in increased output without any in- 



HABITS 171 

creased effort on the part of the workers. It will simply 
be converting the energy used for unproductive purposes 
into productive results. The fact that this ^q^^^^ qJ 
is not for the purpose of exploitation, or dimin- proper 
ishing the efficiency of the workers, but for habits of 
increasing their efficiency without any greater ^""^ 
expenditure of energy should be made clear. The aver- 
age worker is opposed to change, because it means for a 
time paying more direct attention to mastering new 
methods, and because he believes that every innovation 
or change is for the benefit of the employer, at the expense 
of the employee. Prejudices and fallacious beHefs such 
as these should be overcome at the very outset, or else 
proper cooperation will be lacking and failure will result. 
The cooperation of the laboring force having been 
obtained, the chief difficulty is over, because without it, 
the successful introduction of new habits is conyersion 
impossible. Standard methods of work ob- of new 
tained, their successful introduction demands methods 

• 111,. ,. J into habits. 

considerable time, patience, and perseverance. 
The new methods must be mastered, and by repetition 
converted into habits. This accomplished, the working 
force through increased efficiency and wages will be 
better satisfied and more contented under the new con- 
ditions than under the old. With proper consideration 
of employees, clear explanations of purposes and results 
of changes, proper incentive to make changes, and gradual 
introduction with considerate and patient instructors, no 
employer will have much trouble in changing habits of 
employees, and thereby increasing their efficiency. 

Efficiency demands healthy and intellectual workers. 
Health is largely dependent upon the forma- proper 
tion of proper habits of Hving. Regular eat- habits of 
ing, proper mastication of food, cleanHness, ^^^e- 
regular hours of rest, and wholesome recreation are the 



172 ECONOMICS OF EFFICIENCY 

results of habit. Parents, in training their children in 
proper habits of Hving, have a duty to perform to industrial 
society. A person accustomed to dirty and filthy sur- 
roundings will have great difficulty in acquiring the habit 
of cleanhness. Employers frequently have great difh- 
culty in getting their employees to Hve amidst proper 
sanitary and hygienic surroundings. If once the habit 
of proper living has been acquired, they express the 
greatest abhorrence to the very conditions which had 
taken so much patience to break them away from. Em- 
ployers should insist on the acquiring of proper habits of 
living, and see that they are followed by their workers. 

Many acquire early the habit of rapid eating and the 
improper mastication of food. Many form habits of 
Proper Overeating, which lead to indigestion and ill- 

habits of health, and many become accustomed to eat- 
eating. j^^g sweets, cakes, and pastry instead of good 

wholesome and properly cooked food. All of the bad 
habits of eating lead eventually to ill health, low vitality, 
and inefficiency. Efficiency demands careful investiga- 
tion into the habits of living of employees, and the cor- 
recting of those detrimental to health. Nurses and 
dietitians to visit the homes of employees, and to instruct 
in the proper manner of Hving and of eating are essentials 
in large business enterprises. Lectures on hygiene, care 
of the body, and proper clothing should be regularly 
given, and all expenses so incurred are good investment, 
because the increased efficiency of the working force 
repays manifold every dollar so spent. Even to-day, the 
Training in 3,verage business man hesitates about interest- 
proper ing himself in the lives of his workers. The 
habits of time is not far distant when nurses and doctors 
^'^^^^^ will be regularly employed by large business 
enterprises, and not the exception, as it is to-day. Train- 
ing in proper habits of living is as essential in the 



HABITS 173 

management of an enterprise as training in the methods 
of doing work. 

Habits, from the point of view of efficiency, may be 
classified as efficient and inefficient. The former include 
those which assist in getting the best possible 
results out of a given expenditure of mental habits ^° 
and physical energy, as proper habits of Hving, 
work, and industry. The latter include improper habits 
of work, improper modes of Hving, and habits of intem- 
perance and of indolence in any form. These . 
should be eliminated if the goal of efficiency is 
the aim. Employers cannot afford to remain indifferent, 
and trust that the state and society will eliminate or rid 
industrial society of these cost-increasing fac- t ^ • . 
tors, but should take the matter into their 
own hands, and by their own efforts discover and remedy 
improper habits in their working force. As soon as 
employers reahze that the decrease in costs will more 
than repay for the expense of such action, they will become 
active in studying habits in order to eliminate those 
which are not conducive to efficiency. 

Formerly, and even to-day, business men associate 
habits with bad habits, and look upon a habit as some- 
thing undesirable in a worker, and a factor, 
if present, working toward inefficiency and loss. ^^ h^Us!° 
They look upon all habits as bad and unde- 
sirable, and fail to see that good habits are just as desir- 
able as bad are not. Habits play a very important part 
in the life of every individual, and their study Rgie of 
is a much neglected factor in industrial society, habits in 
It is true that the efficient man is marked off society, 
from the inefficient, and the useful from the useless and 
vicious, by the nature of their habits. Industry and indo- 
lence, efficiency and inefficiency, good and bad temper, 
virtue and vice, are in the last analysis largely matters of 



174 ECONOMICS OF EFFICIENCY 

habit. Losing one's temper or retaining self-control is a 
matter of habit. Each time one is angered by a trifle it 
becomes more difficult to look calmly at anything un- 
pleasant, while each time one controls himself, it becomes 
easier to retain control over future disagreeable 
o/habV^ happenings. The habit of self-control is an 
important factor in business, and is almost a 
virtue in a superintendent or boss, because if he loses his 
temper at every trifle, it reacts upon his men and works 
toward inefficiency. Losing one's temper increases 
chances of mistake and because one loses partial control 
over his actions causes many accidents. A hasty tem- 
per has no place in a business enterprise, and if one has 
that weakness, no time should be lost in gaining self- 
control. 

The drinking of alcoholic liquors as well as the using of 
morphine and cocaine are habits, and the excessive use 
intemper- o^ ^^^Y oi^^ Stamps more firmly the habit and 
ance a makes the user a slave to it. The habitual 

habit. ^ggj. iQggg control of choice, and upon invitation 

to partake cannot refuse to indulge. The habitual drinker 
and the drug fiend have no place in an industrial enter- 
prise, and are derelicts upon industrial society. The 
absolute prohibition of employees to bring alcoholic 
drinks in any form into a place of business should be 
rigidly enforced, and everything should be done to dis- 
courage the use of liquor or drugs at anytime. Extra 
precautions should be taken against bringing into a work- 
ing force a worker addicted to the use of liquor or drugs, 
and if a habitual user is found, opportunity should be 
given to reform, and if not promptly acted upon, dis- 
missal should follow. Efficiency has no place for the 
alcohol drinker or drug user. 

The smoking or the chewing of tobacco is likewise a 
habit. The excessive use of tobacco undermines the 



HABITS 175 

nervous system and unfits a man for efficient work. Its 
use in any form should not be allowed during working 
hours, and punishment should be severe for Effect of 
any infringement of the rules. Employers the tobacco 
should discourage the use of tobacco outside '^^''^*' 
their places of business, as no good arises from its use 
and it works toward inefficiency in every working 
force. 

The drinking of tea and co£fee may become a dangerous 
habit, but the use of either in mild form will never do 
any harm. Injury only results when the 
habit is formed of using strong beverages. I co^gee^habit 
have seen workers drink tea and coffee so 
strong that to the taste it was almost as bitter as aloes. 
They were such slaves to the habit that they would far 
rather go without their breakfasts than without their 
strong cups of tea or coffee. Such a habit 
gradually undermines the nervous system, en- 
dangers proper digestion, and lowers vitaHty in general. 
Everything which impairs health affects the efficiency of 
the working force. It is advisable for employers to care- 
fully investigate the drinking habits of their employees 
because they affect efficiency, and everything which im- 
pairs efficiency is of vital importance to every employer. 
The injuries arising from the drinking of strong tea or 
coffee should be carefully pointed out, and every dis- 
couragement given to their use except in mild form. 

The most efficient way to use man's energy is to allow 
him to follow habit grooves of thought and of action. 
It is very necessary to see that correct habits y^^^ ^^ 
are formed, because every correct habit be- habit in 
comes a power which may be used for increas- industrial 
ing the efficiency of a worker. Steadiness of ^°"^ ^' 
production and low costs come from proper habits 
throughout a business enterprise. A most valued asset 



176 ECONOMICS OF EFFICIENCY 

in any business is acquired habits of doing in a standard 
way, promptly, and to the best of one's abihty, the work 
set before one. The aim of efficiency is to obtain the 
best use of natural resources and human energy. To 
accomplish this, careful and close study should be made 
of every factor of production to make sure that it per- 
forms its function with the least waste and with the 
greatest efficiency. No one factor in efficiency is of 
greater importance than habit, yet it is one which in the 
past has been sorely neglected. Waste of energy cannot 
be eliminated or greatly reduced unless special care is 
taken to obtain standards of work, and by careful in- 
struction to make certain that they become habits. The 
obtaining of standards and proper training to acquire 
correct habits is of great interest to the employer, and 
the more attention paid to securing this goal, the greater 
will be the efficiency obtained. 

QUESTIONS 

1. Why is habit an important factor in efficiency? What is 
the difference between habit and instinct ? 

2. What is the process of habit formation ? Why is repetition 
a requisite ? 

3. In what way do habits reUeve the strain of work ? 

4. What is the importance of identical repetition? What is 
the exception nerve route ? 

5. What is the importance of habits of industry? How are 
they acquired ? 

6. How may wastes of energy be eUminated through habit ? 

7. How may the efficiency of the skilled trades be increased 
through acquiring the proper habits of work? 

8. What precautions should be taken in the introduction of 
changes for the formation of new habits ? 

9. Why do employees oppose changes ? 

10. What are proper habits of living ? Give their importance 
in efficiency. 

11. What are (a) efficient habits, (b) inefficient? 



HABITS 177 

12. What are the effects of (a) the drink habit, (b) the tobacco 
habit, (c) the coffee habit ? 

13. Why is it the most efficient way to allow men to follow 
grooves of thought and action ? 

14. What is the importance of training in habit formation? 

15. What difi&culties are encountered in the formation of habits ? 



REFERENCES 

Books 

D. H. Bergey, "The Principles of Hygiene," Chs. IX, X; S. S. 
Colvin, "The Learning Process," Chs. Ill, IV; Colvin and Bag- 
ley, "Human Behavior," Ch. XI; H. L. Gantt, "Work, Wages, 
and Profits," Chs. VII, VIII; J. Hartness, "The Human Factor 
in Works Management," Chs. I, II ; H. H. Home, "The Psycho- 
logical Principle of Education," Ch. XXVI; W. James, "Princi- 
ples of Psychology," Vol. I, Ch. IV; Kirkpatrick and Students, 
"A Study of Habit," P. Klapper, "Principles of Educational 
Practice," Ch. XXIV; C. L. Morgan, "Habit and Instinct," 
Ch. VII; H. Miinsterberg, "Psychology and Industrial Effi- 
ciency," Ch. XVIII; G. E. Partridge, "The Psychology of In- 
temperance," Ch. VI; W. B. Pillsbury, "Attention," Ch. VII; 
W. B. Pillsbury, "The Essentials of Psychology," Ch. Ill; S. H. 
Rowe, "Habit-Formation," Chs. IV-VII, X, XI; W. D. Scott, 
"Increasing Human Efficiency in Business," Ch. XIII; G. F. 
Stout, "Analytical Psychology," Ch. IV ; G. M. Stratton, "Experir 
mental Psychology," Ch. XI; E. L. Thorndike, "Elements of 
Psychology," pp. 199-229; E. L. Thorndike, "Educational Psy- 
chology," Ch. V; Tolman and Guthrie, " Hygiene for the Worker," 
Chs. II, III, VI. 

Articles 

B. R. Andrews, "Habit," American Journal of Psychology, 
Vol. 14, pp. 121-149; A. W. Benn, "Habit and Progress," Mind, 
Vol. II, pp. 243-251 ; H. Black, "The Habit of Work," Current 
Literature, Vol. 35, pp. 724-727 ; J. Calder, "The Effect of Intel- 
lectual Habits," Iron Age, Vol. 91, p. 496; J. Hartness, "The 
Factor of Habit," The Efficiency Society, Transactions, Vol. I, 
pp. 237-242 ; O. J. Schuster, "The Importance of Habit Forma- 
tion," Education, Vol. 31, pp. 73-81 ; W. D. Scott, "Habits that 
Help," Everybody's, Vol. 25, pp. 412-417. 



CHAPTER IX 

Fatigue 

One factor in efficiency which the average employer 
overlooks and which has an important bearing upon effi- 
Fatigue, its ciency is fatigue. Fatigue is a phenomenon 
importance which is daily experienced by men, women, 
in business ^^(^ children. Several psychologists have 
neg ec e . ^qj^q excellent work in the study of this 
phenomenon, and several exhaustive studies have 
appeared in America and Europe dealing with the 
cause and effects of fatigue. The importance of the study 
of fatigue to the business man has received Httle atten- 
tion. The struggle for industrial supremacy has brought 
home to every business man the necessity and impor- 
tance of efficiency. Efficiency demands a careful study 
of fatigue, a factor which heretofore has been considered 
of Httle importance to business men, and only suitable 
for conjecture and experimentation in the classroom. 

Work is performed by muscular movement which 
comes from muscular contraction. A process somewhat 

similar to oxidation takes place within the mus- 
fati^^ue °^ cle during its contraction, and waste products or 

toxic impurities are thrown off into the blood. 
Every movement of a muscle and every thought cause oxi- 
dation, and dross or toxic impurities are formed. During all 
work, whether physical or mental, they are accumulating in 
the blood. They are poisonous, and if accumulated to a 
large amount, poison an individual Hke any other poison. 
Their presence at first is not detected, because they do 

178 



FATIGUE 179 

not exist in sufficient amount to make their presence felt. 
It is only after a certain accumulation that further 
addition causes injury. When this period has been 
reached, nature gives warning, and this warning is known 
as fatigue. 

Fatigue is nature's signal to cease the accumulation of 
waste products and to give it an opportunity to elimi- 
nate what has been accumulated. If this 
warning is not heeded, injurious results follow, exhaustion 
and it does not take much more accumulation 
to bring exhaustion or overfatigue. If carried still 
further, death results. Men and animals are known to 
have dropped dead from exhaustion. They are poisoned 
by their own waste products produced during periods 
of activity. The muscles almost immediately become 
rigid, and putrefaction starts in a very short time. 
Lucky is the one who is able to take heed of the warn- 
ing signal of fatigue, and not overtax his own capacity 
for production. 

Work is performed at the expense of nutrients 
stored up within the muscles, and of oxygen absorbed 
from the blood. The toxic impurities pro- 
duced during work circulate in the blood and f^ti^e ° 
act upon the nerve endings in muscles, and 
upon the gray matter of the brain. They diminish the 
contractabihty of muscles and render them less respon- 
sive to nerve stimuli. They poison the large nerve cells 
in the gray matter of the brain, and reduce their power of 
remitting voHtional impulses. When the waste products 
accumulate in the blood, the period is sooner or later 
reached when their action will be felt in the sensation of 
fatigue. Not only is the whole body subject 
to fatigue, but every organ, tissue, and cell ?g7sjv^en. 
of which the body is composed. Fatigue is 
thus a sensation, the result of work carried beyond the 



i8o ECONOMICS OF EFFICIENCY 

capabilities of an organism. It manifests itself in various 
ways. Headache is the usual sensation of brain fatigue, 
and sleepiness is frequently that of physical. Exhaustion 
is very injurious, but fatigue is not. Fatigue may readily 
be done away with, and appears to be a protection to the 
human body. It warns a person when it is time to rest, 
and if the warning is not heeded, the injurious stage of 
exhaustion is soon reached. It is practically impossible 
to tell when strain begins. The consciousness of fatigue 
does not appear with the first casting-off of impurities, 
but only after a certain accumulation has been reached. 
A person does not perceive the on-coming of fatigue, 
and only experiences the sensation when it has reached a 
certain degree of intensity. 

There is a limit to a man's power of doing work, and 
this varies with different people. It depends upon train- 
Power of ^^§' occupation, environment, and the consti- 
work varies tution of the individual. Some people tire 
with people, niore easily than others. People with weak 
nervous systems easily become exhausted and recuperate 
slowly. Different persons vary in their power of resist- 
ance to the action of the toxic impurities of work, and in 
the rapidity with which their bodies cast the impurities off. 

There is nevertheless a certain amount of re- 
forcr^^ serve force which allows our muscles to be 

overtaxed without injurious consequences. 
If the work is prolonged so that the reserve force is 
consumed, precautions should be taken to make certain 
that there is sufficient recuperation to restore the used 
reserve force. Serious injuries arise when reserve force 

is encroached upon, and complete recupera- 

ex^nt*° ^*^ ^^^^ ^^^^ ^^^ ^^^^ place. There is a limit to 
the reserve, and when it is consumed, exhaus- 
tion follows. When the reserve force is approaching 
final consumption, irritationj nervousness, and impaired 



FATIGUE i8i 

vitality are found. These impair the efficiency of the 
worker, and make him a fit subject for all kinds of diseases. 

The accumulation of toxic impurities without proper 
ehmination lowers the general health of working people. 
It increases the efforts necessary to perform Effects of 
work. The lowering of a person's vitality toxic im- 
makes him susceptible to all kinds of diseases. P^^ties. 
A greater injury results from work done by fatigued 
muscles than from harder labor done before the worker 
is tired. Thousands of workmen are compelled to work 
while fatigued. Productivity continues, but at the ex- 
pense of human health. One of the greatest economic 
wastes is the consuming of an abnormal amount of energy 
by the thousands who are compelled to work with fa- 
tigued bodies. Efficiency demands that work shall not 
be performed by tired and fatigued muscles and 
brains. The management, to get the greatest efficiency, 
should pay particular attention to the question of fatigue, 
and if it were properly studied, working conditions would 
be greatly improved to the advantage, profit, and benefit 
of employer and employee. 

It is generally recognized that with work which re- 
quires close thinking and close attention, there is a 
period, varying with the individual but fairly Effect of 
definite throughout, when concentration, fatigue on 
thought, and attention may be maintained, *^^^^^i°- 
but when the limit is reached there must be relaxation, 
perhaps only momentary, or the productive faculties 
decrease rapidly in efficiency. All work requires more 
or less thought and attention. With the increase of the 
intensity of thought and attention, the casting off of toxic 
impurities increases at a rapid rate. After nature gives 
her signal through the sensation of fatigue, sensibility is 
gradually blunted and attention flags. It is impossible 
for a fatigued man to give the close attention which he 



i82 ECONOMICS OF EFFICIENCY 

gives when he is fresh. The flagging of attention di- 
minishes precision of movements, and is one of the great 
causes of accidents. Nervousness and irritability are 
consequences of a fatigued mind, and their presence pre- 
vents efficient work. 

Fatigue has a baneful effect upon memory, and if 
activity is continued, it will not only greatly weaken its 

power but almost destroy it. Tired persons 
memory *°** often wonder why it is impossible for them to 

remember things, not knowing that the powers 
of memory have been benumbed by poisonous waste 
products. The overworking of children causes an accu- 
mulation of impurities which weakens memory and pre- 
vents intellectual development. Stupidity in working 
children is usually due to the baneful influence of 
toxic impurities. Efficiency demands intelHgent workers, 

and this in turn demands proper intellectual 
stupidity in development of young boys. One of the 
many greatest curses of fatigue comes from cast- 

children. |j^g -j^^Q ^j^g great industrial system unde- 
veloped and stupid workers. This should be remedied 
by compulsory training, and the prevention of overwork 
of boys during years of growth and development. 

The body purges itself of the accumulated toxic im- 
purities during repose. They are normally burned up 

by oxygen brought from the blood, excreted 
toxic im- by the kidneys, destroyed by the liver, and 
purities cast off from the body through the lungs, 
are dis- Rest should ehminate the sensation of fatigue, 

posed of. , , . , . . . . , '^ , , 

and the accumulated toxic impurities should 
be cast off. The body is repaired during rest as long 
as activity is continued within psychological limits, or as 
long as it is balanced by rest. An important factor in 
efficiency is the taking of precautions to make certain 
that recovery through rest is complete. The efficient 



FATIGUE 183 

cycle should be, work to the period of sensation of fa- 
tigue, and sufficient rest to repair the body of its losses. 
Work is often carried beyond the warning 
signal, and it becomes difficult to cast off, Jy^j.ie®®"®°* 
through the repose given, the accumulated 
impurities. This is injurious to health, and the over- 
taxed worker becomes susceptible to diseases of all 
kinds, and his efficiency is impeded by nervousness, 
irritabihty, loss of memory, and flagging attention. 
Efficiency demands that the daily average of expended 
energy should be evenly balanced by fresh strength and 
recuperation. 

Closely related to the repairing of the losses of the 
body through physical and mental activities is sleep. 
Sleep is the best-known phenomenon of life. Sleep 
makes rest more complete, allows greater 
and more complete ehmination of poisonous ^^^"^^o* 
impurities, and assists the restoration of the 
tissues necessary for future activity. Overfatigue with its 
accompanying nervousness and irritabihty is inimical to 
sleep. It causes sleeplessness and a further 
accumulation rather than ehmination of waste and^eep. 
products. A good sound sleep is one of the 
blessings of humanity, and fortunate is he who realizes 
its necessity, and does not impair his efficiency by 
encroaching upon his proper hours of rest and sleep. 

Equally difficult with the question as to what extent 
work may be carried before it is injurious is the problem 
of how much sleep is required. Some people How much 
possess greater recuperative powers than sleep is 
others and impurities are more quickly cast ^^^^^^^^ary. 
off. Six hours of sleep with them give the same recu- 
peration as eight with others. Psychologists agree that 
for the average man, eight hours of sleep are sufficient 
to cast off the accumulated wastes of the preceding day. 



i84 ECONOMICS OF EFFICIENCY 

Effective sleep should be dreamless, because when a 
person dreams it means so much hindrance to the ehmi- 
nation of poisonous wastes. One of the greatest requi- 
sites of effective sleep is a bountiful supply of fresh air 
during sleep. Efficiency demands proper sleeping quar- 
ters and proper ventilation, so as to assure the greatest 
possible destruction of waste products, and the greatest 
possible building up of new tissues. 

Employers are commencing to realize that it is to 
their interest to see that their employees protect them- 
Proper selves by taking proper sleep and taking it 

habits of Under proper conditions. Strictness regarding 
sleep and regular sleeping hours is an absolute necessity 
if the greatest efficiency on the part of the 
working force is to be attained. Nurses should visit the 
homes of employees in order to see that all precautions 
are taken for an abundant supply of fresh air during sleep. 
Sleeping in close quarters retards the process of elimi- 
nation of waste products, and defeats the purpose and 
the object of sleep. Precautions taken to assure proper 
rest increase the efficiency of the working force, and help 
the employee in protecting his health, and in conserving 
his strength and vitality. 

During work, the process of elimination and destruc- 
tion of the toxic impurities is going on, but their produc- 
T, ., , . tion is greater than their destruction. Work- 

iivils 01 im- . . *? . . 

proper mg With proper sanitary conditions, proper 

working temperature, good ventilation, and an abun- 
dant supply of pure air increases the destruction 
of toxic impurities. Dust, odors, high temperature, and 
high humidity affect the working power of the laborer, 
through consuming more energy in the performance of 
his work, and loading the blood with an increased burden 
of impurities. 

One of the chief antidotes to fatigue is nourishment. 



FATIGUE i8s 

Fatigue does not always or necessarily depend upon the 
amount of work done. A good deal depends upon the 
state of the body. No general rules can be importance 
laid down which apply to all people and to all of food 
kinds of work. All circumstances which ham- and good 
per work in any way, as ill-health or pain, have 
the effect of increasing the production of toxic impurities. 
The muscles may for a time continue to perform some 
work, but they soon give out. Efi&cient work demands a 
healthful body and a peaceful mind. Ill-health of any 
kind increases the energy needed for work and hastens 
the accumulation of toxic impurities. One of the great 
essentials for health is regular and proper nourishment. 
This demands a careful selection of articles of food and 
their proper cooking. Half-cooked foods cause indiges- 
tion, a common ill, and the cause of much unnecessary 
fatigue. It is a business proposition to see that em- 
ployees get nourishing food, and to have it properly 
cooked. Some employers give their employees free 
lunches or lunches at cost. Little attention has been 
given to instructing the wives of employees in the selec- 
tion or in the cooking of food. The time is not far 
distant when employers will realize that it pays to send 
domestic science teachers to the homes of their employees 
to teach wives how to choose the best food, and how to 
cook it. 

The human body demands relaxation as well as rest 
to repair the wastes of work. Play, amusement, and 
reading are the chief agencies for mental re- Relaxation 
laxation. Athletic sports should be encour- its place in 
aged by employers. The benefit obtained by efficiency, 
employees from the mental relaxation during games of 
ball or tennis fully repays their cost to employers. In- 
door games of all kinds furnish wholesome amusement 
and recreation for the fatigued brain. Efi&ciency demands 



i86 ECONOMICS OF EFFICIENCY 

healthy sport and wholesome amusement. It is profit- 
able to employers to furnish and equip athletic fields, 
indoor gymnasiums, and amusement halls. A hall for 
dancing, singing, and music during lunch hours and after 
work is a paying investment in a large enterprise. Many 
employers find it profitable to have a circulating Hbrary 
with good books and magazines. The furnishing of whole- 
some recreation takes away the temptation to seek un- 
wholesome centers. Many a good worker has had his 
ef&ciency impaired and oftentimes ruined by being in- 
duced to take the fatal step in seeking recreation to 
satisfy the cravings of a fatigued brain. Employers are 
realizing that wholesome recreation is part of the worker's 
daily life, and that efficiency is increased by providing 
various forms of good recreation. 

A difficult problem to decide is how much food, 
recreation, and rest are required for healthy recupera- 
tion. This is quite different from what we 
fatfue*^^*° think we require. Sensations are misleading, 
and it is not difficult to acquire habits which 
are quite contrary to nature's demands. The amount of 
food needed to keep our bodies healthy probably differs 
with each individual, and at present is not accurately 
known. The acquiring of the habit to eat proper food, 
properly cooked, and slowly, and to Hmit eating to the 
point of satiety, is a very important factor in the health 
of every workman. The amount of rest needed for the 
average man follows very closely the old adage, "Eight 
hours work, eight hours play, and eight hours sleep." 
Food, rest, recreation, and sleep are the effective anti- 
dotes to fatigue. A careful observance of each is the 
demand made by efficiency, and it is to the interest of 
employers and employees to see that a proper amount of 
each is obtainable. 

Efficiency is an enemy of alcohol and of all stimulants. 



FATIGUE 187 

The efficiency movement puts a ban on the use of all 
alcohoHc drinks, and is an important factor working for 
temperance. Stimulants are like a whip in Ejects of 
that they urge on the muscles, and cause more alcohol on 
rapid contraction. They do not bring a new workers, 
supply of energy into the system, but use the reserve 
force. Liquor may drive away temporarily the sensa- 
tions of fatigue, but in the end it is a greater drain on 
the reserve force, and leaves the worker weaker. The 
extra drain resulting from the use of stimulants demands 
longer rest periods for recuperation ; when they are not 
obtained, impurities accumulate, and sooner or later 
cause a breaking down in health. If toxic impurities are 
not normally ehminated, they place the workman in an 
abnormal frame of mind. He seeks to deaden the sen- 
sations of fatigue by alcohol, tobacco, exciting amuse- 
ments, or excesses of any kind. Liquor acts j^^g^ 
upon the muscles and the nerves, causing un- ance comes 
certain muscular control, and frequently leads ^^°^ o^er- 
directly to accident and injury. The em- ^ ^®' 
ployer who is seeking efficiency in his working force 
should take extra precautions against hiring men ad- 
dicted to the use of alcohoHc drinks. Their use outside 
of working hours, if in any quantity, has an effect upon 
the worker the following day. Alcohol and stimulants 
of all kinds are factors working towards inefficiency, and 
if an efficient force is the aim, their use should be strictly 
forbidden. 

Pauses and rest periods are in many kinds of work 
great conservers of energy. They allow the blood to 
renew oxygen, and to partially eliminate the j^^^^ 
wastes of work. A few minutes rest allows a periods, 
certain amount of recuperation. The strength when 
of muscles under intermittent work may be 
almost double that under continuous work. Pauses are 



i88 [ECONOMICS OF EFFICIENCY 

absolutely necessary in the case of work requiring con- 
siderable thought, close attention, or strenuous muscular 
activity. If they are not given, the sensation of fatigue 
comes early, and continuous work uses the reserve force 
and taxes the body. The additional drain is not repaired 
overnight, and health is soon impaired. Employers can- 
not afford to have their employees' strength overtaxed 
or their health impaired. They should pay close atten- 
tion to all kinds of work, and where more than ordinary 
attention, thought, and strength are required, should give 
proper rest periods so that their employees are not over- 
taxed, and their strength, health, and efficiency impaired. 

The workman at the beginning of the day is cautious 
and attentive. He avoids danger because his attention 
Fatigued ^^ alert. If work continues after nature's 
workers warning in the sensation of fatigue, it decreases 
^^^_ sensibility, diminishes attention, and lessens 

precision of movement. Where before alert- 
ness avoided accident, now lack of attention and of pre- 
cision in movements causes a misstep or a slight devia- 
tion in movement, bringing hand, foot, or body in con- 
tact with moving machinery, and accident follows. The 
number of accidents increases with great rapidity as 
fatigue and weariness of workmen increase. There is an 
immediate relation between fatigue and industrial acci- 
dents. Experts have proven that the greatest number 
of accidents occur between ten and eleven in the morn- 
ing and three and four in the afternoon. The losses due 
to accidents caused directly by fatigue amount to millions 
of dollars every year. 

Numerous factors besides work have an important 
Effects of bearing upon fatigue. Dirt and dust have a 
dirt, dust, depressing effect upon vitality and lessen re- 
and noise, sistance to impurities. Efficiency demands 
cleanliness and freedom from dust in factory and plant. 



FATIGUE i8g 

Noise of all kinds has its influence upon fatigue. The 
roaring of machinery has a great influence upon atten- 
tion. It necessitates a greater exertion to maintain 
attention, and is an extra strain upon the muscular 
and nervous systems. Every precaution should be 
taken to lessen the roar of machinery. Where there 
are constant and loud noises, and close attention is 
required, frequent rest periods should be given, or the 
vitality, health, and efficiency of the operatives will 
soon be impaired. 

Workmen, even if properly nourished, cannot produce 
beyond a certain limit without injury. Capacity for 
work varies with different individuals. If g ^^^jj^^ 
work is carried beyond a certain point, the frequently 
work is gained at the expense of the worker's »° economic 
muscular and nervous systems. Speeding, in ^^^ ®' 
the majority of cases, is an economic waste. It causes 
a temporary increase in productivity by an extra drain 
upon the human system. If sufficient rest is 
not given to recuperate, it undermines the s^edfng 
human system and impairs the efficiency of the 
workers. Speeding is one of the common evils of piece- 
work. If piece-work is carried beyond the normal 
capacity of the worker, it represents an economic waste 
in curtailing in the long run the productivity and the 
efficiency of the worker. More sickness and low vitality 
are found among piece-work tailors than among any 
other classes of workers. The greatest precautions 
should be taken to see that workers do not work beyond 
their physical and mental capacities, which will even- 
tually impair their efficiency through undermining their 
health. Speeding and piece-work are two causes of 
economic waste, and the extra productivity gained at 
the expense of human health is dearly paid for. 

Good work can never be performed by tired brain or 



I90 ECONOMICS OF EFFICIENCY 

fatigued muscles. The amount and the quaKty of the 
work are greater when fatigue has not been 
^imts o reached. If a worker is tired, and it is neces- 
sary to use more effort to complete a task, he 
completes his work only by using a certain amount of 
his reserve force and by making additional demands 
upon his nervous system. Work in itself is a blessing. 
Work, while physiologically making for health, may, if 
pushed too far, so as to induce overfatigue, ultimately 
unfit a worker for his daily task. Work becomes injuri- 
ous and dangerous when a normal amount of rest does 
not eliminate the impurities accumulated during work. 
Instead of the daily cycle of accumulation and elimi- 
nation of the poisonous wastes, there is a gradual ac- 
cumulation leading to a progressive impairing of health. 
What should be the length of the working day is a 
serious problem to-day. Maximum efficiency comes 
The length with the adjustment of the work so that it fits 
of the work- the capacity of the workmen. How many 
ing day. hours Can a man work without impairing his 
efficiency is the question which should be solved in order 
that the greatest efficiency may be attained. The 
decision should be made after a careful study of work 
to discover what length of working day accumulates 
impurities that can be eliminated by a night's rest, sleep, 
and repose. Again, the decision as to whether 
ded^e* ^ msin should work eight, nine, or ten hours per 
day should depend upon the character, and the 
intensity of the work, and the surroundings while at work. 
What energy, whether muscular, mental, or nervous, is 
necessary to perform the work is the important question. 
Six hours with some kinds of work are more exacting 
than nine or ten with others. Where work is intense 
and carried on amidst noisy surroundings, or where it 
requires concentrated thought or strong muscular 



FATIGUE 191 

energy, the maximum time should not be greater than 
eight hours. Where men are compelled to work longer, 
the additional product is obtained at the cost of impaired 
health, and represents a loss rather than a profit. Where 
work is not difficult and no great strain is necessary, the 
length of the day may be increased by another hour 
without any injury to health or efficiency. In many 
cases, not only should eight hours be the maximum Kmit, 
but there should be frequent pauses during the working 
day. An economical period of work gets all the advan- 
tages of continued work without injurious fatigue. 

The power of resistance to the toxic impurities may 
be increased by training. Training is the development 
of skill, and of the power of resistance to the importance 
action of the toxic impurities of work. As re- of training 
gards the latter case, it acts in much the same ^^ resisting 
way as increasing the tolerance of a poisonous ^ '^"^' 
drug by administration of successively increasing doses 
of it. Training increases efficiency not only by the 
acquiring of dexterity, but also by increasing the power 
of resistance to toxic impurities. William James, in 
his essay on "The Energies of Man," says, "We live 
subject to arrest by degrees of fatigue which we have 
come only from habit to obey. Most of us may learn 
to push the barriers further off and to live in perfect 
comfort on much higher levels of power." It is hard, 
in many cases, to distinguish between real and 
false fatigue, and to know when real fatigue ^se fatigue 
has been reached. The easy surrender to 
fatigue may be easily acquired as a habit, and when it 
is, it is difficult to change. Many people who have 
little resistance to the toxic impurities of work may 
account for it by a surrender to habit. Such a habit 
prevents men from working to their proper efficiency, 
and if acquired, should be altered by a course of training. 



192 ECONOMICS OF EFFICIENCY 

Progress and development depend upon work. The 

casting off of toxic impurities is unavoidable if one 

works. If a worker becomes fatigued before 

sarr^fatigue ^^^ ^^^ ^^ ^^^ ^^y^ ^^ works with impaired 

energy. If he is compelled to do things in 
connection with his work that unnecessarily tire him, 
the employer loses thereby, and loses in proportion as 
the condition is remediable. It stands to reason that 
any means which tend to conserve a worker's strength 
and to postpone fatigue, give increased productive re- 
sults. There is no reason why energy should be wasted 
in tiring the muscles by unnecessary work when that 
energy saved could be used to more productive advantage. 
CHmbing stairs is very tiring for women and to a less 
degree for men. A woman after climbing several flights 
Saving ^^ stairs starts work with a greater accumula- 

energy for tion of toxic impurities than would result from 
productive two or three hours of regular work. This 

handicap is unnecessary and wasteful. There 
is no reason why this energy should be consumed in un- 
necessary work when it may be conserved to give more 
efficient work. An elevator pays for itself several times 
a year by increasing the efficiency of workers through 
saving the unnecessary expenditure of energy in climb- 
ing stairs. In some plants it is necessary for workers 
to go several times a day from one floor to another, and 
they are usually compelled to climb stairs. This causes 
a great expenditure of unnecessary energy which may 
be easily conserved. 

Many operations are of a nature that an employee 
may sit as well as stand. There are few that do not 

allow the worker to sit at intervals if only for a 
sitting ° ^^^ moments at a time. The old notion was 

that sitting during working hours was a sign of 
laziness and not to be tolerated. Little did employers 



FATIGUE 193 

realize that compulsory standing when not necessary 
was impairing efficient results, and by just so much 
diminishing profits. The management to-day, working 
for efficiency, has a very different attitude towards the 
question. It believes that employees should be en- 
couraged to sit whenever the work may be done as effi- 
ciently sitting as standing, and encourages sitting when- 
ever five minutes' rest may be obtained without any loss 
in work. 

The clerk in a store might Just as well sit as stand 
when not waiting upon a customer or putting stock in 
order. If seats are provided, and clerks are en- where 
couraged to use them whenever it does not in- sitting is 
terfere with work, they would be able to give p°^^*^^®- 
better service to both customer and employer, because 
not unnecessarily tired and worn out by useless standing. 
The same applies with many operations in a factory. 
Many machines allow the attendants some time for 
sitting, and if facilities are provided, many occasions 
would arise where sitting for a few minutes would be 
possible. The periods, although short, would in their 
total make a great difference in the physical condition 
of employees at the close of a working day. 

The kind of stool has much to do with the kind of rest 
that it gives. A mere stool serves a purpose, but to 
give full benefit, it should have back rests, and Kind of 
be of the proper height so that the feet of the stool 
employee rest on the floor. If stools are too "^®<*^**- 
high, foot-rests should be provided. In many cases, 
stools should be provided which allow quick rising and 
sitting. Many factories do not even provide seats, 
and the foremen do not allow the use of any 
improvised by the workers. They beheve that noUaziness 
sitting leads to laziness and diminishes output. 
They are yet to be enhghtened that it increases effi- 



194 ECONOMICS OF EFFICIENCY 

ciency and output. If they would only reflect a little, 
they would realize that the more they relieve their em- 
ployees from unnecessary muscular strain, the more 
energy is left to turn out work. 

Every employee should have a certain definite task 
to perform. The greater the specialization of industry, 
What a the fewer movements are demanded of the 

worker employee. All his energy should be devoted 

s ou do. ^Q ^j^g direct performance of his particular 
task. Energy consumed in doing other things lessens 
by so much the energy available to make his work more 
efficient. This makes many demands upon the man- 
agement. A worker should not use his time or energy 
in getting or putting back tools or in obtaining or re- 
moving materials. Tools and materials should be de- 
livered and removed by unskilled hands. The proper 
tools and the proper amounts of materials should always 
be present, and in a place which causes the least exer- 
tion to obtain when wanted. There should be no cause 
or excuse for a worker to leave his task. Every time 
this happens it not only takes time, but consumes 
energy, and diminishes the supply for real productive 
work. 

The old method of handling and conveying materials 
and tools from place to place when wanted was by the 
Methods of usc of human muscular energy, whereas effi- 
conserving ciency demands the abolition of the use of mus- 
energy. cular power for such purposes, and its conser- 

vation for more effective work. In many factories, 
in this enhghtened industrial age, you find the calling 
of men from their tasks to assist in moving heavy ar- 
ticles. Quite different is the modern efficient factory, 
where a man is not called upon to waste his energy in 
such work, but all lifting is done more effectively by 
hoists, cranes, etc. Only recently, I visited a loft fac- 



FATIGUE 195 

tory in the city of New York. It occupied three stories 
and these did not have any connection except the stairs. 
A few hundred dollars would have installed an elevator, 
chutes, and speaking tubes. The saving in time alone 
is sufficient inducement for the extra expenditure, while 
the increased efficiency from the wasted human energy 
saved will repay the cost of installation several times 
during a year. Elevators of various sorts, chutes, 
cranes, hoists, movable platforms, electric trucks, and 
conveying belts are a few of the energy-saving devices 
which have become necessities and integral parts of 
modern plants. Speaking tubes and telephones play 
an important role as conservers of human energy. Too 
much emphasis cannot be placed upon using, wherever 
possible, various devices for saving human effort and 
energy. The conservation of human energy wards off 
fatigue, and to that extent increases the efficiency of the 
working force. 

It does not pay to wear out men. If men are forced 
to work at such a pace that their vigor is diminished, 
they will in a lifetime do less work than they wastes 
would if they worked at a lesser pace. Speed from 
causes losses to both society and industry. ^^**sue. 
Professor Irving Fisher estimates the minimum annual 
cost through serious illness in this country at one and 
one-half billion dollars, and says that the economic 
waste through undue fatigue is probably much greater. 
Fatigue is a factor which should be reckoned with in aU 
work. It is not due to work, but to overwork. Fatigue 
should be studied by every employer, and the work of 
his employees should be so directed as to obtain the 
highest efficiency. This demands a minimum of fatigue. 
If the warnings of fatigue are not heeded, it may prove 
very injurious. Fatigue may limit industrial expansion, 
and is one of the causes of misery, poverty, and disease. 



196 ECONOMICS OF EFFICIENCY 

It leads to nervousness, craving for excitement, and 
frequently to crime. Workmen should be taught to 
work to best advantage and to accomplish as much as 
possible with minimum fatigue. No one element of 
industry is of greater peril to workers than fatigue. It 
destroys intelligence, cuts down output, impairs quaHty, 
and invites industrial accidents. 

QUESTIONS 

1. What is the relation between fatigue and efi&ciency? 

2. What are the causes and effects of fatigue ? 

3. What are the effects of toxic impurities on (i) the muscles, 
(2) the brain ? 

4. What is the effect of fatigue on memory ? Account for the 
stupidity of children who work. 

5. What precautions should be taken in sleep ? How much 
sleep is necessary for a worker ? 

6. What are the chief antidotes to fatigue? 

7. Show the relation between intemperance and overfatigue. 

8. What is the importance of rest periods ? What decides the 
length of the periods ? 

9. What is the relation between fatigue and accidents ? 

10. What is the importance of training in order to resist fatigue ? 

11. What is the difference between real and false fatigue? 

12. How may fatigue be warded off through conserving the 
energy of workers ? 

13. What are the methods of conserving energy? 

14. What are the wastes from fatigue? How may they be 
eliminated ? 

15. What are the limits of work ? How may they be decided ? 

REFERENCES 

Books 

A. R. Adelson, "Mental Fatigue" ; T. Arai, "Mental Fatigue" ; 
J. Goldmark, "Fatigue and Ef&ciency"; L. H. Gulick, "Mind 
and Work," Chs. VIII, IX; L. H. Gulick, "The Efficient Life," 
Chs. XI-XV; Hough and Sedgwick, "The Human Mechanism, " 



FATIGUE 197 

Chs. V, XVIII; F. S. Lee, "Fatigue," Harvey Lectures, Phila- 
delphia, 1906, pp. 169-194; A. Mosso, "Fatigue,"; H. Miinster- 
berg, "Psychology and Industrial Efl&ciency," Chs. XVI, XVII; 
S. Nearing, "Social Adjustment," pp. 190-210; M. Offner, 
"Mental Fatigue"; T. Oliver, "Dangerous Trades," Ch. VIII; 
W. B. Pillsbury, "The Essentials of Psychology," Ch. XIV; W. 
H. R. Rivers, "The Influence of Alcohol and other Drugs on 
Fatigue," W. D. Scott, "Influencing Human Efficiency in Busi- 
ness," Ch. IX; Tolman and Guthrie, "Hygiene for the Worker," 
Ch. IX; C. S. Yoakum, "An Experimental Study of Fatigue." 

Articles 

E. S. Bogardus, "The Relation of Fatigue to Industrial Acci- 
dents," American Journal of Sociology, Vol. 17: Nos. 2, 3, 4; 
T. L. Bolton, "The Fatigue Problem," Journal of Pedagogy, 
Vol. 16, pp. 97-123 ; W. Burridge, "An Inquiry into Some Chem- 
ical Factors of Fatigue," Journal of Physiology, Vol. 41, pp. 285- 
307; F. W. Eastman, "An Antitoxin for Fatigue," Harper, Vol. 
119, pp. 897-902 ; H. B. Favill, "The Toxin of Fatigue," Survey, 
Vol. 24, pp. 767-773; M. Foster, "Weariness," The Nineteenth 
Century, Vol. 34, pp. 337-352; P. W. Goldsburg, "Recreation 
through the Senses," Atlantic Monthly, Vol. 107, pp. 411-423; 
W. R. Cowers, "Fatigue," Quarterly Review,. Vol. 200, pp. 556- 
575; W. R. Cowers, "Brain Fatigue," Living Age, Vol. 244, 
pp. 102-114; L. H. Gulick, "The Time to Quit Work," World's 
Work, Vol. 14, pp. 9196-9198; L. H. Gulick, "Effects of Mental 
Fatigue," World's Work, Vol. 14, pp. 9345-9349 ; W. Hard, 
" Fatigue : Why Men Tire and the Effect of Rest," System, Vol. 24, 
PP- 377~387 ; W. Hard, "What Constitutes a Fair Day's Work," 
System (English Edition), Vol. 25, pp. 298-306; H. W. Harper, 
"A Contribution to the Chemistry of Fatigue," Journal of Ameri- 
can Chemical Society, Vol. 25, pp. 33-47 ; F. S. Lee, "The Nature 
of Fatigue," Popular Science Monthly, Vol. 76, pp. 182-195; 
F. S. Lee, "Fatigue," Journal American Medical Association, 
Vol. 46, pp. 1491-1500; Wm. McDougall, "The Conditions of 
Fatigue in the Nervous System," Brain, Vol. 32, pp. 256-268; 
J. M. Moore, "Studies of Fatigue," Yale Psychological Laboratory 
Studies, Vol. 3, pp. 68-95; W. H. Rivers, "On Mental Fatigue 
and Recovery," Journal of Mental Science, Vol. 42, pp. 525-529; 
P. G. Stiles, "The Elements of Fatigue," Science Conspectus, 
Vol. 3, pp. 58-61 ; T. A. Storey, "Why Workmen Tire," Factory, 



iqS economics of efficiency 

Vol. 8, pp. 273 + ; E. K. Strong, "Fatigue, Work, and Inhibition," 
Psychological Bulletin, Vol. 10, pp. 444-450; L. I. Thomas, 
"Sitting Down to Work," Factory, Vol. 12, pp. 131 + ; E.L. Thorn- 
dike, "Mental Fatigue," Psychological Review, Vol. 7; William 
A. White, "Some Considerations Regarding the Factor of Fatigue 
with Reference to Industrial Conditions," American Journal of 
Medical Sciences, Vol. 145, pp. 219-225. 



CHAPTER X 

Working Environments 

During the last few years of the nineteenth century, 
many employers took initial steps to improve working 
surroundings and sanitary conditions of their 
plants. Sanitary and hygienic improvements fo°|m*^ 
were introduced in many plants, as well as provements 
many movements commenced to improve ^^ *^® °^°®- 
workers mentally, morally, and physically, century. 
Employers were not guided by the same 
motives in the improvements as they are to-day. Em- 
ployees were dissatisfied, and began to murmur against 
the appalling hygienic and sanitary conditions found in 
plants and working places. Times were prosperous and 
employers were making large profits. To calm the 
dissatisfaction, many improved sanitary conditions and 
introduced innovations to benefit the working force. 
Employers believed that this was the cheapest way to 
calm the rising discontent. To-day, there is a differ- 
ent motive for looking after the health of the working 
force. It is a dollars-and-cents proposition, and because 
of this it is daily attracting more attention and getting a 
firmer hold on business men. Dollars and cents, sentiment 
and not sentiment, is the ruling force in the 
business world. Sentiment has little place in actual 
business where self-interest is the guiding motive, yet 
many would have us believe that other motives 
play an important role. The average business j^fgjggt 
man is not in business, with its endless bur- 
dens and cares, for the love of it, but for the profits made. 

199 



200 ECONOMICS OF EFFICIENCY 

The old saying "business is business" has always ruled 
supreme in business activities, and will continue to do 
so as long as men work for profits. Such being the 
case, it will be only the exceptional business man who 
is moved by sentiment to introduce changes for the bet- 
tering of his working force. 

As soon as business men reaHze that safeguarding and 
protecting the health of their workers lower costs and 
Health an increase profits, it will be the exceptional em- 
essentiai ployer who will not take every possible pre- 
factor in caution to maintain the health of his working 

ciency. force. One effect of the present efficiency 
movement is the changing of the motive for paying 
attention to health from one of sentiment, paternaHsm, 
and altruism, to one of dollars and cents. Health in a 
working force is an absolute essential for efficiency, and 
the realization of this accounts for the interest taken 
at present in this factor of efficiency. Efficiency de- 
pends chiefly upon the human element in business. 
Health is its basic structure, and without good health 
efficiency is not attained. The health of the employee 
is accordingly of primal importance to the employer. 
Until recently, employers were not only indifferent, but 
ignorant of the means of maintaining the health of their 
workers. This surprising lack of interest in 
health ^° ^^^ health of the working force has been due to 
the fact that its relation to profits was not 
known. Employers are interested in profits alone, and 
as soon as they realize that profits depend on health, 
they will become interested in it. One can work at 
his best only when in good health, with brain clear, 
and with muscles active and responsive. To obtain 
the best productive results from the human energy ex- 
pended is the aim of efficiency. The human element, 
or workers, should be of the best quality, and this means 



WORKING' ENVIRONMENTS 201 

good physical health. Health and efficiency are closely 
related, and the latter cannot be reached without the 
former. 

Modern industry demands of workers health and good 
physique, and no kind of work can be performed effi- 
ciently without good health. Intellectual 
keenness and foresight, essential factors in ^.^e^th 
employees, are impaired without it. Sick- 
ness and ill-health are the greatest foes to profits, effi- 
ciency, and success. The employer cannot afford to tol- 
erate any conditions which endanger or impair the health, 
or lower the vitality of his working force. Impaired vigor 
is a loss to everyone. It affects employees by cutting 
wages, ofttimes causing great misery and suffering, and at 
the same time is costly to the employer by increasing 
costs. No one can do efficient work of the proper quaHty 
and quantity unless he is fit in body for his task. 

In the struggle for industrial supremacy which is 
being waged by the great industrial nations of the 
world, success depends largely upon the effi- conserva- 
ciency of the human element in industry. The tion of 
nation which first masters the secret of ob- j^eaith; its 

.. rr ' r • , i> r '■\^ importance. 

tammg efficiency from its working force will 
be the one which will forge ahead and conquer. The 
conservation of health, strength, and vigor, the main- 
taining of a high vitality in the working force, and 
the prevention of disease are important economic factors 
in this industrial struggle, and are more important 
than the conservation of our forests and natural resources. 
The greatest wastes in our industrial system are those 
due to illness, and to workers trying to work with im- 
paired health. The conservation of health is of the 
greatest importance to the employer, to the employee, 
and to the nation at large, and demands the closest 
attention of federal, state, and municipal powers, the 



202 ECONOMICS OF EFFICIENCY 

care of father, mother, and teacher, and the earnest 
attention of the employer of men and women. 

The effect of environment on workers is great, and 
there is an intimate relation between the conditions 
Environ- which surround workers and their ef&ciency. 
ment and Expensive machinery is carefully protected 
efficiency. fj-Qm dust, and kept well lubricated and in 
good repair, but until recently no thought was given to 
the more important factor in efficiency, the human 
factor, which tends and operates the machines. Just 
as machinery is affected by environment so is the worker, 
but a great deal more so, as he is sensitive to slight 
changes in the conditions which surround him. Suc- 
cess in the average business enterprise depends in a 
large measure upon the workers' physical and mental 
well-being. The importance of the best working con- 
ditions and surroundings is more generally recognized 
each succeeding year. Efficiency depends upon the 
comfort of workers at work, as well as upon their health. 
The aim, therefore, in every enterprise is to get working 
conditions most conducive to the comfort, and to the 
health of the workers. Working conditions and sur- 
roundings should be made hygienic, sanitary, 
and healthful in every possible way. Light, 
ventilation, temperature, humidity, cleanliness, dust, 
air, odors, gases, and dampness are some of the factors 
which should be given careful study in every enterprise. 
The neglect of any one has a direct bearing upon effi- 
ciency through causing discomfort and impairing the 
health and the vitality of the working force. 

The lighting facilities in an enterprise have a direct 

Effects of s-iid important bearing upon the health and 

good the efficiency of the employees. According 

ghtmg. ^Q experts, the normal capacity of workers 

may vary 20 per cent under proper and improper light- 



WORKING ENVIRONMENTS 203 

ing conditions. Good lighting affects the efficiency of 
workers in various ways, as : causes greater accuracy in 
work, saves eyestrain, permits greater rapidity of 
work, increases output, reduces the number of accidents, 
makes more cheerful surroundings, increases the com- 
fort of workers, is conducive to cleanliness by exposing 
dirt, decreases costs through less spoiled work and fewer 
mistakes in work, improves the quality of work, and 
lastly, discourages slovenly work and soldiering. 

Efficiency in illumination is measured in obtaining 
the object sought, namely sight. It depends not upon 
the number of lights supplied but upon the 
ability of the eyes to perform their duties with- jUu^nTtion^ 
out the least effort or strain. There is no 
standard as to light and illumination in plants, offices, or 
stores. Enterprises vary with the character of work 
performed, and with the amount of light required. The 
test is that there should be sufficient light in every part 
of a plant, so that the work required to be done may be 
performed without any eyestrain, or delay through lack 
of proper light. 

The cheapest and the best light is natural light 
diffused uniformly through sufficient windows for proper 
lighting. The eyes should not be strained Natural vs. 
even on a cloudy day. Experiments prove artificial 
that after three hours of work in ordinary day- ^ ^^^^' 
light, there is little change in the working efficiency 
of the eye, but after the same period of work in artificial 
light the keenness of the eye has fallen off very much, 
and there is a distinct loss in muscular adjustment for 
accurate vision. Observe an object steadily for half 
an hour in natural light and then in artificial ; the differ- 
ence in strain upon the eye will be noticeable. Artificial 
light of any kind differs materially from daylight in that 
it does not furnish a pure white light, the customary light 



204 ECONOMICS OF EFFICIENCY 

rays being red, yellow, or violet. There is a difference 
of opinion as to the color best suited to our eyes, but it 
cannot be disputed that vision is the most perfect, and 
there is less strain to the eyes under the influence of 
white Hght. 

It is only recently that business men have learned the 
importance and the value of an abundant supply of 
How to ob- natural light and have taken special care to 
tain supply have as large an area of glass as possible. 
ay ght. g^QQfg g^g ^gii g^g -^aiis are used for windows. 
The saw-tooth roof with the glass portion towards the 
north allows a satisfactory diffusion of light. To get 
the greatest abundance of dayhght, the window-glass 
should be either pure white, ribbed, or prismatic, and 
scrupulously clean. The walls and the ceiling of a 
building have an important bearing upon the diffusion 
of light, and should be painted creamish white, white, 
or greenish gray. Some use whitewash, but its lack 
of durability, and its falHng off in flakes makes it a 
continuous nuisance. Frequently a wall painted white 
gives a glare which is injurious to the eye. A cream 
color never glares, and gives the best satisfaction as a 
suitable color for walls and ceihng. Walls should be 
kept clean, because if dirty and dingy, the proper diffu- 
sion is not obtained, and the lack of sufficient light may be 
the cause of eyestrain. 

The eyes of a worker in many kinds of work must 
remain constantly fixed upon the work which he is 
Benefit doing, or upon near-by objects in the room, 

from This constant watching is fatiguing and strain- 

wmdows. jj^g upon the eyes. A momentary glance at 
something in the distance relieves the strain, relaxes 
the tension, and allows the eyes to work on refreshed. 
Glancing out of a window in such cases has a very bene- 
ficial influence, and works toward efficiency. Formerly^ 



WORKING ENVIRONMENTS 205 

employers objected to windows because they believed 
that employees wasted time by glancing or looking out, 
and windows, they declared, interfered with work. 
Little did they realize that windows, in place of de- 
creasing output, increased it, by furnishing a momentary 
rest and relaxation to busy eyes, and assisted in increasing 
the efficiency of workers. 

During many months of the year, sufficient natural 
light cannot be obtained for working through the en- 
tire working day, and artificial lighting is 
absolutely necessary. Every afternoon, fre- ughting 
quently mornings, and occasionally during 
stormy days in winter, artificial lighting must be used, 
while many employers have night work, and then it 
is the only Hght possible. An artificial lighting system 
is necessary in every enterprise. Arc, incandescent, 
gas, and kerosene lamps were practically the only arti- 
ficial fights available ten years ago. During the past 
few years many improvements have been made in 
electric and gas fighting. Of the many vari- 
eties of electric fights on the market, the tung- ughting. 
sten is the most favored and the most satis- 
factory. Due to the absence of danger from fire, to no 
gases being thrown off, and to causing no material in- 
crease in temperature, the electric lamp has decided 
advantages over the gas. If the electric lamp 
is not available or possible, gas used with a ove/gas^^^ 
Welsbach burner gives the most satisfactory 
light. With the increase during recent years in the 
use of electricity, it is hard to find a town of any size 
in the middle west or the east, or even in the major 
part of the far west which has not the use of electricity. 
If a building is not wired, and electricity is available, 
the greater efficiency resulting from electric lighting 
will in a short time pay the cost of installation of an 



2o6 ECONOMICS OF EFFICIENCY 

electric lighting system. Electric lighting gives the best 
satisfaction of all lighting, and should be used wherever 
possible. 

The requirements of a satisfactory artificial hghting 
system are as follows : There should be sufficient light 
to allow every employee to do his work with- 
li'^htin^ out straining of the eyes, and without hesita- 
require-' tion from not being able to see distinctly the 
ments of part of the task being performed. There 
system. should be uniform illumination. The entire 
working surface should be light, and Hghting 
should not be restricted to certain sections. There 
should be reliability. The light should always be avail- 
able when needed, and should be constant and not 
flickering, because flickering light is very straining to the 
eye. There should be proper quality. This has to do with 
intensity, — that is, proper intensity to do work, proper 
diffusion through the lighted space, and absence of glare. 

A room may be lighted by overhead lamps, by indi- 
vidual lamps, or both. Formerly, the individual lamp, 
^ . , with a small number of overhead, was the 

Overhead i i r t i • 

and indi- usual method of lightmg, and as a result, a 
viduai large part of the floor space was in compara- 

amps. ^j^^ darkness. This method is poor and 

defective. With the coming of the tungsten, the mer- 
cury vapor, and other electric lights, the overhead lamp 
has come into favor, and the individual is gradually 
disappearing from use. The overhead is the most effi- 
cient, and the only system of lighting which should be in 
use in any plant, store, or office. 

The eye is the most important organ of the human 
Conserva- body, and for its conservation httle is being 
tion of the done. The conservation of the eye means the 
®^®' prevention of all causes, and the amelioration 

of all conditions which tend to the destruction, or the 



WORKING ENVIRONMENTS 207 

impairment of eyesight. The improper use of eyes causes 
injury to the eyes themselves and may greatly decrease 
the efficiency of workers through producing illness. 
Loss of sight reduces a worker's efficiency to a minimum, 
while the least impairment of sight injures it somewhat. 
The lack of good sight is a more or less serious handicap 
to every worker. The eye is an organ whose sensitive- 
ness exposes it to numerous risks, and every worker daily 
runs great risks and is often the victim of injuries 
resulting in the impairing of sight. These risks are often 
preventable. Eyestrain causes brain fatigue ^ . 
and has a direct bearing upon efficiency. Poor 
light produces a bodily and mental discomfort which 
seriously affects workers and their work. Headache is 
a common ailment from eyestrain. There is a great 
temptation to abuse the human eye. Bad methods of 
lighting are so common that good lighting is the excep- 
tion. Industrial conditions to-day demand the perform- 
ance of a lot of work by artificial light, and it is time 
that employers should realize that good Hghting is a 
dollars-and-cents proposition. The loss in efficiency of 
all classes of workers through bad lighting entails losses 
of milKons of dollars annually. 

Every place where work is performed with the aid 
of artificial light should be carefully studied to see that 
the following injurious conditions do not exist ; injurious 
excessive Hght, insufficient light, glare, strong lighting 
contrasts, flickering, heat or odors from fight, conditions, 
and shadows. A too brilliant illumination is just as 
injurious as lack of sufiicient hght. Frequently, inten- 
sity of light is caused by the lighting fixtures 
being so arranged that the worker must look ^g^^^^*^^ 
steadily, or at intervals, at the source of light. 
Fixtures should never be arranged so that the light is 
on a level with the eye of the worker, and to prevent 



2o8 ECONOMICS OF EFFICIENCY 

occasional glancing at a glaring light, reflectors and 
shields should be provided for all lights. In- 
light "^° sufficient light to see clearly the performing of 
work, every one knows and admits causes 
strain upon the eyes. The amount of light needed de- 
pends upon the character of the work, and should be 
sufficient to allow the worker to see clearly every opera- 
tion necessary to be performed without strain on the eyes. 
This is a problem for careful investigation, and too great 
emphasis cannot be placed upon the bearing of proper 
lighting upon output, quality of work, efficiency and 
profits. 

Glare is very fatiguing and straining to the eyes. 
It may come from the lights themselves, from walls, 
ceiHngs, or bright surfaces. To prevent 
lamps from glaring, reflectors and globes are 
used. A reflector performs an additional service in 
diffusing light most effectively for work. To get the best 
results, reflectors and globes should be kept 
andriobes clean. Where individual lamps have not 
been discarded, extreme care should be exer- 
cised, or the eyes of workers will suffer greatly from strain. 
The lamps should never be on a level with the eye, 
and should be such that the light falls over the shoulder. 
Frequently, a sHght change in arrangement and the 
addition of globes and reflectors will cause much saving 
How to ^^ strain to the eyes of workers. A careful 

prevent examination should be made in every case, 
glare. ^^^ •£ carefully arranged and protected lamps 

are not used, a few dollars may greatly increase the effi- 
ciency of workers through changing fixtures and the ad- 
dition of reflectors and globes. Walls and ceilings should 
be such as to prevent glare. A cream kalsomine gives 
the best satisfaction for diffusing Hght, and at the same 
time is not glaring to the eye. By paying attention to 



WORKING ENVIRONMENTS 209 

fixtures, reflectors, and globes, an ample supply of light 
may be obtained without being in any way glaring to 
the eyes of workers. 

FHckering and strong contrasts, or sudden changes 
in the intensity of light, are very injurious to the eye. 
A uniform steady Hght is what is desired, and . 

is what every employer should insist upon ^' 

having. There are so many excellent lamps on the mar- 
ket that there is no excuse for a flickering one. Strong 
contrasts in electric lighting are caused by 
some fault in the circuit, and the cause contrasts 
should be ascertained as soon as possible, and 
remedied before injury is done to the eyes of workers. 
Serious injuries to the health of employees frequently 
arise from poisonous odors given off by gas lamps. 
In one factory sickness was reduced 50 per 
cent by changing from gas to electric light- 0/ gf/*^*^ 
ing. If a working place is lighted by gas, a 
frequent inspection should be made to see if workers in 
any way suffer from the products given off by the com- 
bustion of the gas. If gas jets are too near workers, 
discomfort, headaches, and sickness frequently arise 
from the effects of the products given off and from the 
heat of burning gas. If gas is necessary, extreme care 
should be taken to make certain that neither the health 
nor the eyes of workers suffer therefrom. 

The eye is contracted more during the day than at 
night, which is due to the greater intensity of daylight 
over artificial light. It is not so sensitive to 
changes in illuminating intensity during the SuSnation 
day as at night, when it is more relaxed on 
account of the lower intensities of artificial light. An 
intensity suitable at night may not be adequate for day 
illumination. If artificial fight is used during the day, 
special care should be taken to secure proper intensity 



2IO ECONOMICS OF EFFICIENCY 

so that the worker is able to perform his task without 
strain to his eyes. 

Poor lighting and gloomy surroundings have depress- 
ing bodily and mental effects which seriously affect 
Good light- workers in their work. Light and cheerful 
ing a neces- surroundings have a direct effect upon workers 
sity. |3y making them more comfortable, contented, 

and satisfied. The efficiency of the worker in every form 
of business activity is greatly increased by the provision 
of good light. Too great emphasis cannot be placed 
upon the value of good lighting as a factor in lowering 
costs of production, and it is only recently that the 
importance of this factor is being recognized by employers. 
The discomfort of a stuffy room is apparent when it 
is entered. It affects health and produces physical 

and mental conditions which decrease effi- 
f'^i'^?r°* ciency. No one can work as well in a stuffy, 

ill-smelling, uncomfortable room as he can 
where the air is fresh and pure, and has the proper amount 
of moisture and heat. The breathing of foul air brings 
on a sense of drowsiness and a lack of ambition, which 
are conditions which affect thought, interest, attention, 
and concentration. Foul air fosters indolence, inac- 
curacy, carelessness, and poor work. Workers are 
practically forced into these faults through physical 
conditions under which they work, and yet they are 
blamed and criticized for them. No matter what the 
nature of the work, mental, physical, or merely mechan- 
ical, if the air a worker breathes and is surrounded by 
is not suited to his body, an improvement in that air 
would be an important factor in increasing his efficiency. 

The value of pure fresh air of proper humidity 
pure^ak ^^^ temperature cannot be overestimated, 

and no effort or expense should be spared to 
supply it. Pure air is an absolute necessity for effi- 



WORKING ENVIRONMENTS 211 

ciency, and the expense entailed in procuring it is re- 
turned several times during the year in more and in 
better work. It is strange that shrewd business men 
who are always on the alert for improvements and 
innovations for increasing profits have overlooked air, 
a most important factor in reducing costs and increasing 
efficiency. 

The conditioning of air so that a worker may work 
under the most favorable conditions demands close 
attention of every employer. The chief ^j. condi- 
factors to be considered are temperature, tioning; 
humidity, air movement, dust, and fumes, chief factors 
The chief thing which makes air in a working place 
harmful, aside from the special problems of dust and 
fumes, is overheating, and this is particularly so with 
the presence of excessive moisture. A temperature 
over seventy degrees Fahrenheit affects the heat-regu- 
lating mechanism of the body by keeping the blood in 
the skin and away from the vital organs, which impairs 
the efficiency of the nervous and digestive systems, and 
of the body as a whole. The general effect Effects of 
of heat and moisture is familiar to every one a high 
who has tried to do either brain or muscular tempera- 
work in a heated boiler room, as compared 
with the brisk temperature of an October day. It can- 
not be denied that workers in any place where the tem- 
perature is over seventy degrees Fahrenheit have their 
health im.paired by producing a low vitality with a less 
disease-resisting force, and become easy victims to tuber- 
culosis and other contagious diseases. 

The first important problem of air-conditioning is the 
prevention of overheating, and the practical 
method for attaining this end is the chandno; Ventilation : 
r .1 . TT M • • 1 . ^ its meaning. 

01 the air. Ventilation or air change is ac- 
complished either by natural or by artificial means. In a 



212 ECONOMICS OF EFFICIENCY 

room where only a few people work, the air may be 
transferred through windows, cracks, sub- 
stances of walls, ceiHngs, and floors with 
sufficient rapidity without making special provisions 
for the purpose. Where many are working, such is 
impossible, and some artificial system should 
be used. The average individual at work 
produces about as much heat per hour as is given off by 
the burning of two candles. In many places this is 
increased by the running of machinery, the lighting sys- 
tem, and other sources of heat. The heated air should 
be removed, and provision should be made by a ventilat- 
ing system to remove and to replace it by cool air. If 
air is introduced from the outside, it should be made in 
temperature a little below that which is normally felt 
to be comfortable. In summer time it may be neces- 
sary to cool the air, while in winter the air should be 
warmed. The latest improvement is to cleanse the air 
from a room, and to force it back again. If such a sys- 
tem is used, the hot air expelled may have to be cooled 
after it is cleansed before it is returned to the room. 
In every working place, incoming air should 
Tempera- ^^^ ^^ below sixty degrees Fahrenheit, be- 
cause if so, it would interfere with the effi- 
ciency of the workers. The chief problem is the expulsion 
of the heated air, and the introduction of cool pure air 
to take its place. Methods of ventilation are many 
and should be suited to meet each particular case. It is 
generally accepted that hot air should be taken out near 
the top of a room, and cool air admitted near the bottom. 
The problem of space for occupants is an important 
one in ventilation. Experience has proven 
lowance" ^^^^ ^^^ minimum space per person should 
not be less than two hundred and fifty cubic 
feet where artificial lighting is not used, and four hun- 



WORKING ENVIRONMENTS 213 

dred where it is. The two minima should be fixed and 
provided for by statutory law. When the air space 
is less than the above minimum, it is practically impos- 
sible to properly condition the air, but above, it may be 
done in some cases by natural, and in others only by 
artificial means. Having adequate cubic space does not 
by any means insure good air, because it simply pre- 
vents overcrowding to the point where proper air condi- 
tions are impossible. Where a room has the proper 
air space, the question of comfort on the part of occu- 
pants depends upon the important problem of air change. 
English experts have discovered that without proper 
provision for air change, the condition of air was no 
better in rooms with over five thousand cubic feet of 
air space per person than in those with an air space of 
over three hundred. 

Proper air conditions in a room should, except in the 
case of temperature, closely imitate the outside atmos- 
phere. The air out of doors is never still, 
and is constantly in motion. The move- ^atioii 
ment brings slight changes of temperature 
which are invigorating and stimulating. A basic prin- 
ciple of ventilation is not merely that a certain amount of 
pure air should be brought into a room and foul air 
expelled, but that the air should be exchanged 
in such a fashion as to produce a steady move- 
ment of air in every part of the room where human 
beings are at work. Proper circulation or movement 
is an absolute essential in air conditioning. Experts 
declare that the air in a room should be made to move 
at the rate of from two to five feet per minute. A 
majority of ventilating engineers declare that ^.^ .^ j^^ 
the IlHnois law as to air requirements is 
satisfactory. The law requires that fifteen to eighteen 
hundred cubic feet of air per hour according to specified 



214 ECONOMICS OF EFFICIENCY 

conditions, for each person present and employed, should 
be supplied, unless the cubic space in the room should 
be over two thousand cubic feet per occupant, and 
outside window and door space be equal to one eighth 
of the floor space. This gives a reasonable rate of air 
change, and is satisfactory for efficient work. 

Conditioning of air has to do with quahty as well 
as quantity. QuaHty deals with temperature, humidity, 

dust, fumes, and gases. Temperature and 

humidity are measured by an instrument 
called a sling-psychrometer, which consists of a pair 
of thermometers, one of the ordinary type, and the 

other having the bulb covered with a wet 
chrom^ter. doth. Moisture evaporates from the wet 

bulb at a rate which depends upon the amount 
of moisture in the air, this evaporation cools the wet bulb, 
and lowers the temperature, which is recorded. From 
the temperature of the dry bulb thermometer, and the 
difference in the readings between the dry and the 
wet bulb, the moisture in the air is determined. A 
high wet bulb reading denotes high temperature and 
a high percentage of moisture, a condition most 

harmful to the human body. Haldane has 
Effects of shown, as far as the psychological effect is 
humidity. concerned, that a very high temperature 

with low humidity is about the same as a 
very low temperature with high humidity. When 
the temperature rises to eighty degrees Fahrenheit with 
moderate humidity, and about seventy degrees Fahren- 
heit with high humidity, depression, headache, and dizzi- 
ness manifest themselves. At seventy degrees Fahren- 
heit, with saturated air, Haldane found that the temper- 
ature of the body actually began to rise, that is, fever 
set in. A moderately high temperature with a low 
humidity produces a stimulating effect, causing irrita- 
bility, nervousness, and discomfort. 



WORKING ENVIRONMENTS 215 

Air always contains a certain amount of water in the 
form of vapor, which varies from thirty degrees to 
complete saturation, and gives from one to 
twelve grains of water in a cubic foot of air Water in 
according to temperature. A well-known 
physician states that the daily amount of water given 
off by the skin of a single person is two and a half pounds, 
and about ten ounces by the lungs. When the 
air possesses a high percentage of moisture, 
it lessens evaporation, as it has little drying power, and 
the water from the skin is with difhculty evaporated. 
One of the chief methods of cooling the body is evapora- 
tion of the perspiration. When the air is hot with high 
humidity, it tends to increase the effects of heat, and 
discomfort, headache, and even fever follow. This 
condition may become so intensified that the Ejects of 
temperature of the body greatly exceeds the high and 
normal, and heat exhaustion follows. Exces- low hu- 
sive dryness of the air is also harmful. It in- °" * ^' 
creases evaporation, the skin becomes dry, and the 
mucous membranes of mouth, eyes, and respiratory 
passages are irritated. Discomfort, irritation, and 
nervousness follow. The best working temperature is 
between sixty-five and seventy degrees Fahrenheit, and 
with an average humidity of from 60 to 70 per cent. It 
matters not what kind of work is being performed, every 
effort should be made to avoid extremes of heat, cold, 
and moisture. 

A comfortable temperature, a moderate humidity, 
and a proper circulation of air are necessary factors for 
efficiency. A slight variation in the tem- Effects of 
perature of in-coming air from that of the air high tem- 
in the room stimulates the energies of workers. P^^^^ure. 
Working in a high temperature, workers soon become 
listless, careless, and slovenly in their work, all of which 



2i6 ECONOMICS OF EFFICIENCY 

have an important bearing upon quality of work, as well 
as output. It also causes drowsiness, discomfort, and 
headache, leading to devitalized bodies, which become 
easy victims to all kinds of diseases. 

Window and door ventilation should be carefully 
controlled. If rooms are hot, and workers perspiring, 
it is a great danger to their health to open 
froncf^'^^ windows and allow draughts of cold air 
draughts blow through the rooms. During the faU, 
and heated vi^jnter, and sometimes spring, workers are 
forced to run great risks of ill-health and 
sickness. They work all day in a high temperature, 
and going out into the cold air to go to their homes at 
night, wet from perspiration, and usually with low 
vitality, they become easy preys to many diseases. 
Proper air not only assures better health, but increases 
efficiency. It is a dollars-and-cents proposition, and 
every employer should pay particular attention and spare 
no expense in obtaining proper temperature, humidity, 
and circulation of air. The increased efficiency of the 
working force repays many times the extra outlay. 

Indoor air is never as pure as that on the outside, 
because it is always more or less polluted by the products 
Impurities ^f combustion, by the decomposition of sub- 
of indoor stances, and by the wear and tear of tools, 
^""- machinery, buildings, and materials. The 

presence of individuals always tends to vitiate the air 
with germs and organic matter from their skin, mouths, 
lungs, and soiled clothing. These impurities may be 
classified under three heads, dust, fumes, and gases. 
Dust is an enemy of efficiency and affects individuals 
in various ways. Dust may be divided into 
kinds' three classes, insoluble inorganic, soluble in- 

organic, and organic. The first class includes 
small particles of metals, minerals, stone, etc. The 



WORKING ENVIRONMENTS 217 

inhalation of these dusts causes more or less harm to 
respiratory organs. The inhaling of iron dust, it has 
been proven, may diminish in time the respira- 
tory efficiency of the lungs through a loss of [norganlc. 
elasticity. It is certain that the inhalation of 
these inorganic dusts often carries germs and harmful 
bacteria to places in the lungs favorable to inoculation. 
Many die from infectious pulmonary diseases, not know- 
ing that the breathing of dusty air has been the cause 
of the infection. The exposure of workers to dust is 
dangerous, as it sooner or later impairs their health and 
efficiency. 

Soluble inorganic dusts, as the name implies, com- 
prise particles of those substances which are soluble, 
and if taken into the body will in the course 
of time be absorbed, as arsenic, mercury, jnorga^c 
etc. Many are poisonous, and their absorp- 
tion by the body causes serious illness and, if in sufficient 
quantities, death. The third class comprises fine par- 
ticles arising from flour, grain, cotton, wool, ^ 
rags, hides, etc. Many diseases are traceable 
to one or the other of these organic dusts. Many dan- 
gers arise from dusts, whether of the one or the other 
of the three classes, as, firstly, dusts cause irritation 
of the respiratory passages, eyes, nose, and skin 
of workers ; secondly, if inhaled and lodged in ^us^*^ ° 
the lungs, they may reduce the resistance of 
these organs to harmful bacteria, and cause workers to 
become easy preys to tuberculosis and other diseases; 
thirdly, dusts may be germ-laden, and carry germs not 
only to the lungs, but to other parts of the body ; fourthly, 
many are highly inflammable, and in proper propor- 
tions and under suitable conditions, are subject to spon- 
taneous combustion. 

Many conditions and circumstances have a more or 



2i8 ECONOMICS OF EFFICIENCY 

less serious influence upon the health of workers, but 
the foremost and most certain of serious 
sicknes^*^ results is dust, whether organic or inorganic. 
Experts have discovered that sickness and 
mortaHty of workers are high or low in almost exact 
proportion as the air is filled with or free from dusts. 
We also know that the proportion of deaths from tuber- 
culosis is very high in trades with continuous or con- 
siderable exposure to metallic and mineral dusts, and 
the same is true of mortality from respiratory diseases 
in general. Employers should realize that it is a dollars- 
and-cents proposition to keep their premises as free as 
possible from dust. Every dollar spent in so doing re- 
pays manifold in giving better health and increased 
efficiency on the part of the working force. From the 
point of view of the health of its citizens, it is the right 
and duty of every state to pass laws to prevent workers 
from working in dust, and in a more or less germ-laden 
atmosphere. The better health assured, the loss of time 
on account of sickness saved, and the general increase 
in efficiency should be sufficient inducements for dust 
prevention. 

The problem of dust prevention is more or less diffi- 
cult. In operations accompanied by the creation of 
Means of dust, every effort should be made through 
dust pre- careful arrangement and mechanical devices to 
vention. reduce the dust as much as possible. The use 
of hoods for dust-making machines is absolutely neces- 
sary and inexpensive, and a proper ventilation system 
greatly assists in dust removal. Where it is impossible 
by hoods or devices to remove dust, and it is in sufficient 
quantities to be injurious to workers, respirators and 
goggles should be furnished by employers. If dust is 
produced which is highly inflammable, and a sufficient 
quantity is hable to lead to spontaneous combustion, 



WORKING ENVIRONMENTS 219 

care should be taken to introduce into the room, at 
certain intervals, a certain amount of moisture, sufficient 
to remove the danger. 

Extreme care should be exercised in removing dust 
from the floors and walls. The old-fashioned broom 
and the dry duster are dust movers, and not 
dust removers. They scatter the germ- ^^"^^ ^^^^^ 
laden dust throughout a room. Dry sweep- 
ing and dusting should never be allowed in any room 
where people are working, and it is advisable not to use 
either in any case. Dustless brooms, dustless brushes, 
wet sawdust, sweeping compounds, hygienic floor 
brushes, vacuum cleaners, and numerous preparations 
for dust removal are available and cheap, and should in 
every place replace the corn broom, cloth, feather 
duster, and mop and pail. 

In many places, offensive fumes and gases are produced 
in the making of the product manufactured. Every 
effort should be made through careful arrange- 
ment, and mechanical devices to reduce the gases^ 
free discharge of these gases to a minimum. 
Frequently discharge of gas may be prevented by proper 
covers for vats and vessels, and there are in the market 
many ventilating, condensing, and burning devices. 
Where it is impossible to prevent the presence of gas or 
fumes, respirators, goggles, and sometimes gloves and 
skin protectors should be used. A proper 
ventilating system is a great help in lowering Yemivl 
the amount of fumes and gases in any place 
where these are produced. The reducing of these in a 
plant to a minimum should be compelled by statutory 
legislation. Many states have made the attempt, 
while a few have fairly satisfactory laws, but there is 
still the need of much improvement, and this can be more 
easily accompKshed with the cooperation of employers 



220 ECONOMICS OF EFFICIENCY 

and employees. It is an important public health 
problem, let alone its effect upon efficiency, and either 
should be sufficient inducement to insure every precau- 
tion to protect employees from poisonous and injurious 

fumes and gases. Poisonous fumes and gases 
workers"" ^^^ closely related to inefficiency, and this 

fact, if no other, should make the progressive 
employer reahze that it is a business proposition to guard 
the health of employees from them, and thus increase 
their efficiency. Impure air, dust, fumes, and gases are 
arch-enemies of efficiency, and efficiency cannot be 
reached in any plant where their presence is found. 

Every employer should be made to realize that it is 
a good investment to study carefully his own plant 
Returns for with special reference to the health and the 
proper en- safety of the employees, and to ascertain and 
vironments. ^^ provide conditions under which his par- 
ticular plant may be economically and profitably con- 
ducted. It is a matter of common experience that an 
intimate relation exists between the conditions which 
surround a worker and his efficiency. The proper mental 
attitude of a worker toward his work is best generated 
and maintained where best working conditions are 
provided. Bright and cheery environments, a proper 
supply of pure air, no dust or fumes, proper temperature 
and humidity, are great factors in making workers cheer- 
ful, happy, and contented. It is poor business to allow 
conditions to exist that cause ill-health, as costs are kept 
high through diminishing both the quality and the 
quantity of goods produced. It cannot be denied that 
a happy and contented worker turns out better and more 
work than the unhappy and discontented one. Em- 
ployers should be made to realize the real value of 
workers' physical and mental well-being. 

The contentment of the employee with his surround- 



WORKING ENVIRONMENTS 221 

ings, and his freedom from mental depression or ill- 
health are factors directly affecting his out- 
put. All physical inconveniences which waste proper en- 
human strength and effort, as foul air, poor vironments 
light, dust, and unsanitary conditions, are ?"® °^^^^ ^° 
marks of inefficiency. The lack of proper 
hygienic conditions in the large majority of plants is 
due to ignorance rather than to neglect. There is need 
of further development of scientific knowledge of the 
requirements of the human system. The factors which 
protect health and give safety to industry are just 
beginning to be understood in this country. Manufac- 
turers and employers of labor cannot be blamed for not 
wanting to install expensive safety devices, ventilating 
and dust-removing systems, and other methods for 
protecting and promoting health and comfort unless 
they can be shown that such an expenditure is a profit- 
able investment. With realization of the fact that the 
increased efficiency obtained will repay several times 
the expenditure, and an understanding of the demands 
of the human body for health, the next few years will 
see a rapid improvement in air conditions. There is no 
reason why most plants cannot be kept at a comfortable 
temperature, with air containing the proper percentage 
of moisture, and at the same time free from dust and 
impurities. 

QUESTIONS 

1. Why is health an essential factor in efficiency? 

2. What is the importance of conservation of health? Men- 
tion several ways of conserving health. 

3. What precautions should be taken in illumination? Give 
an efficient illuminating system for a plant. 

4. What are the advantages of electric lighting? Give the 
requirements of a good electric lighting system. 

5. How may the eye be conserved? What are the effects of 
eyestrain ? 



222 ECONOMICS OF EFFICIENCY 

6. What is air conditioning? Give chief factors. 

7. What is ventilation ? Outline a good ventilating system. 

8. What precautions should be taken with temperature and 
with humidity ? 

9. Give proper temperature and humidity for efl&cient work. 

10. What are the impurities of indoor air ? How may they be 
eliminated ? 

11. What are the dangers of fumes and gases? What pre- 
cautions should be taken to prevent them ? 

12. Why did employers so long neglect proper working environ- 
ment ? 

13. What is the proper space allowance for work? Give 
requirements of the Illinois law. 

14. What is the relation between efficiency and pure air? 

15. Mention various injurious lighting conditions. How may 
they be remedied? 

REFERENCES 

Books 

C. Baskerville, "Municipal Chemistry," Chs. II, XXII, XXIII ; 
H. K. Benson, "Industrial Chemistry," Ch. II; D. H. Bergey, 
"The Principles of Hygiene," Chs. I-IV; R. C. Carpenter, 
"Heating and Ventilating Buildings," Chs. II, XIII, XIV; C. E. 
Clewell, "Factory Lighting"; J. C. Duncan, "The Principles of 
Industrial Management," Ch. XI; Hough and Sedgwick, "The 
Human Mechanism," Ch. XVI; G. M. Kober, "Industrial and 
Personal Hygiene," Part I; G. M. Price, "Handbook on Sanita- 
tion," Chs. II-VI ; E. H. Richards, " Conservation by Sanitation," 
Chs. I-IV; Richards and Woodman, "Air, Water and Food," 
Chs. I- VIII ; Technology and Industrial Efficiency, pp. 442-449 ; 
W. H. Tolman, "Social Engineering," Ch. Ill; Tolman and 
KendaU, "Safety," Part III. 

Articles 

M. C. Albright, "Doing Away with Dark Corners," Factory, 
Vol. 10, pp. 348+ ; W. J. BitterUck, "A Successful Factory Drinking 
Water System," Industrial Engineering, Vol. 13, pp. 388-389; 
I. Clark, "Norton's Company's Medical Department," Human 
Engineering, Vol. I, pp. 230-240; C. E. Clewell, "Mercury Vapor 
Lamps as Related to Shop Lighting," American Machinist, Vol. 40, 



WORKING ENVIRONMENTS 223 

pp. 711-716; T. Darlington, "Sanitation," Proceedings of the 
First Cooperative Safety Congress, pp. 307-313; E. L. Elliott, 
"Notes on Industrial Lighting," Industrial Engineering, Vol. 13, 
pp. 102-105 ; H. L. Estep, "How to Light the Workroom," Sys- 
tem, Vol. 20, pp. 614-623; I. Fisher, "Industrial Hygiene as a 
Factor in Human Efficiency," Annak of the American Academy 
of Political and Social Science, igii ; O. P. Geier, " Shop Sanitation 
and Workmen's Efficiency," Human Engineering, Vol. I, pp. 249- 
253 ; LB. Hiltz, "The Conservation of Vision," Human Engineer- 
ing, Vol. I, pp. 114-116; S. G. Koon, "When Fresh Air Buys More 
Work," System, Vol. 23, pp. 70-77 ; S. G. Koon, "Oxygen Enough 
for All," System, Vol. 23, pp. 411-417 ; H. F. Porter, "Moderniz- 
ing Methods of Sanitation," Factory, Vol. 10, pp. 332-334 ; H. F. 
Porter, "Getting Rid of Factory Wastes," Factory, Vol. 11, pp. 
120 -(- ; " Principles of Industrial Lighting," Industrial Engineering, 
Vol. XI, pp. 171-177, 257-266,349-356,454-460; " Sanitation, a 
Method of Improving Production," Industrial Engineering, Vol. 14, 
pp. 1-7 ; J. Sebroff, "Drinking Water in Industrial Plants," Indus- 
trial Engineering, Vol. XII, pp. 21-23, 102-105, 191-192, Vol. XIII, 
pp. 338-341 ; W. Talbot, "The Hygiene Window," Human Engi- 
neering, Vol. I, pp. 16-17 ; W. Talbot, "Shop Hygiene as a Factor 
in Efficiency," Human Engineering, Vol. I, pp. 215-226 ; "Uncon- 
sidered Aspects of Ventilation: Humidity the Principal Factor," 
Scientific American Supplement, Vol. 73, p. 247 ; C. E. A. Wins- 
low, "Ventilation, Air Space, Humidity and Temperature," 
American Labor Legislation Review, Vol. I, pp. 11 7-1 20. 



CHAPTER XI 

Welfare Work 

Two necessary factors demanded in every employee 
for efficiency are skill and health. An employee, to be 

efficient, has not only to know how to do his 
o/heaith!^ work in the best way, but must enjoy good 

health. If a worker, skilled or unskilled, is 
worried, discontented, or in poor physical or mental con- 
dition, his efficiency suffers. From the time of the 
introduction of machines, employers knew that to get 
best results, care and attention as well as skill in opera- 
tion were absolutely necessary, yet it was not until a 
comparatively few years ago, that it was reahzed that 
the same care and attention were necessary with em- 
ployees in order to obtain their greatest efficiency. Great 
care is taken of athletes because their success depends 
upon their health and ability to endure strain. The 
same is true of working men. Health should be safe- 
guarded with the greatest care because it is a fundamental 
prerequisite for bodily and mental achievement, and the 
attainment of success and happiness. 

According to a statement of Professor Irving Fisher, 
about three milhons of our people are sick at all times, 

and it is claimed that one-half of this can be 
sickness* prevented. The number of workers who are 

slightly ill, ill enough to reduce efficiency but 
not enough to give up work is much larger, and the pres- 

224 



WELFARE WORK 225 

ence of such in factories, offices, and stores is a real drain 
upon industry. It matters not how true and 
accurate your machine is, a half-sick operative in^us^ °" 
cannot get the best results. Suffering from 
headache, cold, or indigestion does not allow men to do 
as efficient work as if they were well. A plant with a 
healthy working force has a decided advantage in the 
struggle for markets. In the preceding chapter, it was 
explained how health is improved by proper lighting, 
temperature, circulation of air, humidity, and freedom 
from dust and gases, but it should not be forgotten that 
health is assured by proper and prompt medical service. 
Prevention is better than cure, and medical service has 
a definite place in keeping men at a high point of effi- 
ciency. The average plant has a well-equipped repair 
shop to render proper attention in looking after machines 
and keeping them in the best repair, but only a smaU 
percentage maintain an organized department for keep- 
ing their men in good health. 

Sickness may not be severe enough to keep a worker 
from his work, but nevertheless it has a direct bear- 
ing upon his efficiency. It may cause a 

14. • i x,-i A Medical 

worker to remam away from his work, and service, 
the loss in this case is greater. Workmen 
should be instructed by a doctor or a nurse as to how to 
prevent sickness, and should receive prompt and effec- 
tive treatment in case of sickness. A medical Medical 
department should have its place in every depart- 
business enterprise. It has five important ™®°*^- 
functions to perform : the physical examination of 
every employee ; the maintenance of health in a work- 
ing force ; the prescribina; and sometimes the ^ 

J. • r !• • ,1 r • Functions. 

dispensing 01 medicines ; the care of acci- 
dents ; lastly, attention to Hving standards at home. 
Every medical department in a large plant should 



226 ECONOMICS OF EFFICIENCY 

have at its head a doctor who is either a salaried ofi&cial 
Doctor and ^nd devotes his entire time to the employees, 
nurse in or who makes daily visits and is subject to 
plant. ^^Y[ at any time. He should be assisted by a 

nurse, but where men are employed, a male nurse is 
preferable. A plant employing only a few men will 
not find it profitable to have a nurse, but two or three in 
a vicinity may share the expense of one to devote her 
entire time among the plants, and in visiting the homes 
and the famiHes of the workers. A small plant need 
not have a physician visit the place, because this may 
be too expensive, but it should have some arrangement 
with one who will examine workers at his ofhce, and pre- 
scribe if necessary. 

A large plant should have a well-equipped emergency 
hospital, while a smaller one will find it profitable 
to have a small room fitted out for emergency 
hospitd^*^^ cases. "First aid to the injured" jars or 
chests should be found in the emergency 
room, and if the plant is large, several should be 
placed in convenient places, so that one may be reached 
from any part of the plant without trouble, and in a 
very short time. Provision of some kind for emergency 
cases, and for medical care and inspection of employees, 
is absolutely necessary even if only two or three men are 
employed. 

Every employee should undergo a thorough physical 
examination, and the results should be tabulated on cards 
Physical for the purpose and filed. All new employees 
examina- should undergo a similar examination, so that 
^°^' there will be a health-card index for every one 

in a working force. A careful medical examination of 
all applicants will at the outset eliminate all suffering 
from any infectious or contagious disease, to which it is 
very undesirable to expose workers, and will also prevent 



WELFARE WORK 227 

the hiring of those physically unfit for work. No 
employer should hire a worker without first having 
a thorough physical examination made by a medical 
doctor. If this were done, it would be a 
safeguard to the healthy workers, and would 
often prevent loss from having workers with impaired 
health trying to do work which should be performed 
by healthy strong men. 

If defects are found in the health of the permanent 
working force, attention should be given to remedy 
them, and examinations should be made at Treatment 
regular intervals as long as the defects last, of defects 
If slight defects are found on the physical °^^^^^^- 
examination of an applicant, and this is the only objection, 
attention should be given, and frequent examinations 
made until good health is restored. Careful study should 
be made of the demands of each position, so that the per- 
son who fills it may not have his efficiency impaired by 
physical or mental defects. If a worker is found who has 
a defect which impairs his efficiency, continuation at the old 
work should not be allowed . If the defect is only temporary, 
a rest of a few days or a few weeks may restore health, 
but if it is permanent, another position should change 
be found where the demands are such that the of work 
defect will not interfere with efficient work. °^^^^ neces- 
If a person is suffering with asthma and is ^^^^' 
working amidst dusty surroundings, a new position 
where no dust exists should be given him. Again, if a 
person is compelled to work in a standing position all 
day and has spinal trouble, a new position should be 
given him, where it would be possible to sit the greater 
part or all of the time, and perform his work. Great 
losses arise from having workers perform tasks for which 
they are not physically qualified. Ill-health in any form 
is a secret force working towards inefficiency, and 



228 ECONOMICS OF EFFICIENCY 

frequently can only be detected by careful medical 
examination. The goal in every plant should be to have 
aU places filled by workers who are competent to per- 
form efficiently the tasks to be performed. This demands 
medical service, and such is an absolute necessity where 
efficiency is the goal. 

An employer should insist that every employee consult 
the plant physician or nurse at the first symptoms of 
Importance iH-health. It is frequently hard to induce 
of treating an employee to do so, because he does not 
slight ail- realize that if slight ailments are taken in 
™^° ^' time, it will often prevent the possibihty of 

long sickness following. Severe sickness may frequently 
be prevented by prescribing at the first symptoms, and 
slight ailments if neglected often develop into serious 
illness. Colds, sore throats, and many ailments are 
contagious, but if promptly treated, and advice given 
as to precautions to follow, it will frequently prevent 
their spreading throughout a working force, and save 
many dollars from loss of efficiency of those affected 
and attending, and from those suffering from severe 
cases, and kept away from their places. Maintaining 
health in a working force is an important factor in 
efficiency, and is one of the greatest guarantees of regu- 
larity in attendance and of increasing efficiency by keep- 
ing employees in good health. The doctor or trained 
nurse should take special pains to instruct employees 
how to prevent sickness, and how to administer prompt 
and effective treatment during incapacity. 

In a large plant, it is advisable to have a dispensary 
in charge of a nurse. If no dispensary, provision 
should be made with a druggist to give 
* ^ ° ^' special rates to employees. In a plant dis- 
pensary, drugs and medicines should be given gratis. 
If expensive drugs or medicines are required, they 



WELFARE WORK 229 

should be given at cost. A dispensary is inexpensive, 
and proves a valuable factor in increasing 
efficiency by assuring better health in the ducTed°°' 
working force. For the treatment of ac- 
cidents, an emergency room or hospital is necessary 
in every plant. All injuries, cuts, scratches, bruises, 
foreign matter in the eye, sprains, etc., should be given 
prompt treatment. If so, blood poisoning can be almost 
entirely eliminated, and loss of time and of efficiency 
from accidents greatly reduced. 

Efficiency of body and of mind is affected by home 
surroundings and conditions. It should be emphasized 
that no employer can afford to do anything 
which does not bear directly upon securing rou^^in^' 
increased efficiency of his working force. 
Anything beyond this savors of charity, and is inva- 
riably opposed by workers. Charity is outside the 
province of a business enterprise, and is 
bound to react unfavorably upon its success, in^res^^'^ ^ 
Anything that increases the efficiency of the 
working force is within the province of every employer, 
and should be of special interest to him. The problem 
of efficiency increases the sphere of activity and the 
interest of employers in their employees beyond the 
plant, to their Kves outside, and to their homes. A work- 
er's home surroundings react upon his ways of thought 
and of working. One who comes from a slovenly home, 
where meals are badly cooked, sleeping quarters not 
properly aired and ventilated, the house in a Htter, and 
things always in general disorder, will usually be a slack, 
careless, and unsatisfactory person. The home sur- 
roundings of employees are important factors in effi- 
ciency, and should be carefully investigated by every 
employer. 

Workers should be encouraged to Hve healthy, thrifty, 



230 ECONOMICS OF EFFICIENCY 

and moral lives so as to develop into strong, happy, 
contented working men. It pays to have 
courage ^ nurse visit the homes of workers, and 
proper teach their wives how to cook food properly, 

u^fn*^ °* how to keep the homes sanitary and properly 
ventilated, and how to administer simple 
remedies in case of sHght illness. Many employers 
provide medical care for the families of their workers. 
Word comes to a worker that a member of his family is 
sick. In place of his going home, a nurse is sent, and he, 
knowing that a competent person is looking after the 
sick member, continues his work as usual. Modern 
industry demands of workers a good physique, as no work 
requiring strength, dexterity, or brain power can be per- 
formed efficiently in the absence of physical stamina, 
and such cannot be attained with malnutrition, bad 
housing, or poor sanitation. No employer who desires 
to obtain and maintain ef&ciency in his working force 
can afford to tolerate any of these conditions in the 
homes of his employees. The instructing of the working 
force in how to Uve so as to attain and maintain health 
is an important problem with every employer, and one 
which cannot be neglected. 

The personality of the doctor and of the nurse is an 
important consideration. In either case, the person 
Personality should be agreeable, sympathetic, possess a 
of doctor cheerful disposition, and one who makes you 
and nurse, f^^j ^^^^ ^ great interest is being taken in you, 
and in whom you are ready and willing to confide. Such 
a person will greatly increase the efficiency of the medical 
department, and will have a decided influence in main- 
taining a good esprit de corps. 

The maintenance of an efficient medical department 
has a distinct and important bearing upon the effi- 
ciency of a working force, and as such is a dollars-and- 



WELFARE WORK 231 

cents proposition. Such a department increases efficiency 
in various ways, some of which are as follows : it 
eliminates all who are absolutely unfit for jyie^j^ai de- 
work ; it increases the efficiency of those with partment 
defects by changes in work, and by care ^^^ ^^- 
and attention ; it brings attention to those "®°*^y- 
who have physical defects, which if not cared for, might 
lead to physical unfitness, but who with proper care 
can be partially or wholly restored to health ; it prevents 
sickness by giving advice to well employees, and by 
immediate attention to shght ailments ; it reduces loss 
of time due to sickness or accidents ; it reduces accidents 
owing to the fact that many accidents are due to ma- 
chines being worked by physically unfit employees ; 
it eliminates loathsome diseases. 

Many large enterprises maintain sanatoriums in the 
country where they send their sick employees. A week 
or two of rest in a sanatorium will frequently Provisions 
restore a valued employee to health when for the care 
neglect might cause illness of long duration, °* *^® ^^'^^• 
or result in some dangerous disease frequently causing 
death. Thousands of deaths occur annually due to 
neglect and carelessness in not paying attention to slight 
ailments or symptoms at the proper time. Many em- 
ployers are not able to bear the expense of private 
sanatoriums, and make provision with public ones to 
care for all cases sent. Frequently, the em.ployer bears 
all the expense whether the sick employee is able finan- 
cially to do so or not, but in some cases, the employer 
pays part and the employee part, but if the employee is 
not able to pay his share, the employer bears all the 
expense. 

Proper nutrition is essential to good health, and 
as far as the employer is concerned, presents two prob- 
lems : first, wholesome food for the employee and his 



232 ECONOMICS OF EFFICIENCY 

family in the home, and secondly, lunches during the 

working day. The importance of instructing 
trition^^"' ^^^ wives of employees as to the necessity 

of obtaining wholesome food and properly 
cooking it is not widely recognized by employers. To 
insure wholesome food at low prices, many employers 
of large working forces run stores and sell goods at a 

small margin of profit. Whatever profits 
assure? remain at the end of the year are given to 

an association for the benefit of employees, or 
divided among them on the basis of purchases. Some- 
times employees form cooperative associations, and by 
buying together are able to get discounts. Many 
employers advise their unmarried employees where to 
board to get wholesome food, and emphasize the effects 
on health of irregular eating, imperfect mastication of 
food, and the eating of indigestible dishes. Many find 
it pays from a business point of view to run boarding 
houses and restaurants for unmarried workers. Board 
is given at actual cost, and frequently at the bare cost 
of food and service, the building, equipment, and other 
requisites being furnished gratis by the employer. The 
obtaining of good wholesome food by workers has an 
important influence upon health and efficiency, and 
makes it a business proposition. 

Indigestion has a direct bearing upon health and 
efficiency, and its ill effects should be forcibly impressed 

upon every employee. The loss in efficiency 
it^ elerts'^' ^^^ ^^ ^^^^ trouble amounts to millions of 

dollars annually. One of the chief causes 
of indigestion is the eating of cold lunches at work- 
benches, or hurriedly bolting down a lunch at home 

during the noon hour. Unless a person gets 

a good substantial lunch, his efficiency must 
suffer before the end of the working day. Scant and 



WELFARE WORK 233 

cold lunches have a twofold effect upon efficiency. 
Workers become hungry long before closing time, and 
good work cannot be done by any one if hungry. The 
lunches cause indigestion, and this impairs efficiency 
during the entire working day. Frequently at noon 
hour, some hasten to a near-by saloon, drink 
a glass or two of beer, and snatch a few 
morsels of food from the free lunch counter, while others 
get a pint or a quart of beer, and lunch upon that and 
a few crackers. The free lunch in a saloon is unwhole- 
some and indigestible. Those who lunch on beer and 
crackers are usually hungry by the middle of the after- 
noon, and famished before closing time. I have seen 
men so weak from hunger an hour before closing time 
that it was practically impossible for them to do half 
the work that they did without effort during the early 
part of the day. It is a proven fact that where men 
are allowed to drink a quantity of beer at the lunch hour, 
it has an important bearing upon their efficiency imme- 
diately following. Beer in any quantity causes drowsi- 
ness and listlessness, and is a great barrier to efficiency, 
and if it is allowed at lunch, it should be only in moderate 
quantities. From the foregoing, it is readily seen that 
the lunch problem is a serious one for every employer, 
and its successful solution adds greatly to the efficiency 
of a working force. 

The lunch problem has during the last decade received 
considerable attention, and in thousands of enterprises 
throughout the country some provisions are interest of 
made to guarantee a warm and wholesome employers 
lunch. Nevertheless, there are many enter- "^ lunches, 
prises where employees are compelled to eat cold lunches, 
and are still allowed to patronize the free lunch counters 
of the near-by saloons. Many started, a few years ago, 
the practice of providing free coffee and a place to warm 



234 ECONOMICS OF EFFICIENCY 

lunches. The experiment proved so satisfactory that 
to-day a great many furnish good wholesome lunches at 
cost. A restaurant should pay not in direct profits, but 
in increasing the efficiency of workers during the last 
working hours of the day. Scores of different plans are 
in operation for helping employees get good warm 
Methods lunches, and vary all the way from a cup of 
for assuring Warm coff ee for one cent, and a dish of soup for 
proper two cents, to full course dinners. A common 

lunches. i • t. ^.t. i r • i 

plan is where the employer furnishes a room, 
Hghting, heat, and equipment, and employees are 
charged for the actual cost of food and service. Some- 
times employers take entire charge of the management 
of furnishing lunches, and sometimes this is left to a 
committee of employees. An employer cannot be 
expected to furnish lunches gratis, but it always pays 
for him to bear a part of the expense. In every case, 
it is a business proposition to see that employees get 
good, wholesome, warm lunches. Where only two or 
three are employed, a small gas stove or an electric plate 
furnishes a satisfactory cooking utensil, and a pound of 
coffee and four or five cans of condensed milk per month 
will give a warm drink. Employees should be encour- 
aged to bring good substantial food, and warm or cook 
it in the place. The total outlay amounts to a few 
cents per month for the employer, and gives each em- 
ployee a warm lunch, and not only increases his effi- 
ciency, but creates a better feeling towards the business. 
Pure drinking water is as necessary to health as 
wholesome food. Many factories have been severely 
Pure drink- handicapped by having a large number of 
ing water ; employees absent on account of sickness, 
its impor- and on investigation, the cause was found to 

be the drinking water. Drinking water should 
receive careful and constant attention so that the health 



WELFARE WORK 235 

of the employees will not at any time be endangered. 
Whatever imperils health is of the greatest importance 
to an employer, and it is a business proposition to pro- 
tect the health of the working force from all perils and 
dangers. 

Drinking water comes from various sources: water 
supply of town or city of location; wells; springs; 
bays, lakes, and rivers. If the source is the p^^.^ (j^ink- 
water supply of a town or city, an analysis ing water ; 
should be made occasionally for impurities itsimpor- 
or bacteria which might endanger health. 
If the source is either well or spring, extreme care should 
be exercised and frequent analysis of the water made. 
Special pains should be taken to prevent the sources of 
well or spring from being polluted by sur- drinking 
face water or other causes, and it should be ^^*^'"- 
frequently cleaned and constantly inspected. Many 
plants along bays, lakes, and even rivers get precautions 
drinking water from these bodies. Pipes are to assure 
laid out some distance from shore, and the ^°°^ water, 
water is pumped to the plant. Frequent analysis should 
be made of the water, and extreme care be taken to see 
that organic m.atter or surface water does not pollute 
the water at the place where the supply is drawn. 
Many employers take further precautions by filtering 
all drinking water. Each source has its own problem to 
solve in guaranteeing pure drinking water, and as such 
should be carefully studied. 

Drinking water is supphed to workers in different 
ways : pail and cup, tank and cup, faucet and cup, 
sanitary fountain. The old-fashioned wooden pail and 
tin cup are germ distributors, and a menace to health. 
The wooden water pail is a relic of the past, and no enter- 
prising employer should allow its presence in his plant. 
The water tank and individual sanitary cups may be 



236 ECONOMICS OF EFFICIENCY 

satisfactory if proper precautions of cleanKness are taken. 

The water should be drawn off by faucet, and 
ing water ' ^^e tank should be carefully cleaned every 
should be morning. The common drinking cup should 
supplied to j^Q^- |3g allowed in any plant. With city sup- 

ply, the faucet and cup are the old means 
for furnishing drinking water, but in every case, individ- 
ual sanitary cups should be used. The ideal drinking 
receptacle is the sanitary fountain, of which many 
varieties are on the market and wherever possible, one 
should be used. One manufacturer said that in the 
saving of time between the ordinary drinking cup 
and the fountain, the latter paid for its installation 
the first month. Provision should be made for re- 
ceiving waste water, and it should not in any case be 
allowed to dampen the floor. There should be a suffi- 
cient number of drinking places easily accessible, and 
convenient to all sections of a plant, so that too much 
time is not lost by employees going and coming from 
getting a drink. 

Drinking water in every case should be cool and 
refreshing. Precautions should be taken not to have 
Importance the water too cold because very cold water 
of cool increases the desire for it, and the taking of 

water. quantities into the stomach is injurious. 

Ice should not be allowed to float in drinking water. A 
water tank should have a separate compartment for ice, 
and with a drinking fountain or faucet connected with 
the water system of a town, or with artesian well, the 
water should be made to flow through a coil of pipes 
packed in ice. A cool refreshing drink invigorates 
workers, and is an absolute necessity in every plant. 
Drinking water is a more important factor in efficiency 
than the average employer beheves. An abundant 
supply of pure, cold, sparkling water is a factor in effi- 



WELFARE WORK 237 

ciency, and it also has a further effect of fostering a better 
spirit between employers and employees. 

Even to-day, many employers consider it ridiculous, 
and an additional expense to furnish sanitary lavatories 
and washrooms. If men wish to wash be- xhe old 
fore going home, or before lunch, pails of water lavatory and 
are obtained, and all help themselves. Some- washroom, 
times towels are supplied, but ordinarily men use hand- 
kerchiefs or whatever they can get. Such practices are 
not only unsanitary, but are a menace to health, and 
many infectious diseases are caught from wiping on 
towels used by many, or washing in the same water with 
others. Some places still retain the old-fashioned iron 
sink filled with filth and germs, and one or two rusty 
iron or tin wash-basins. These are conditions no better 
than pails. Lavatories and closets are still 
appalling in many enterprises. Many states ^"s®"^^- 
have considered it necessary as a protection to health 
to pass strict laws governing them. In spite of laws, 
many are simply depositories for germs, filth, and odors, 
so nauseating that a person cannot remain long in one. 
Many a severe case of sickness is traceable to infection 
received in a dirty, filthy closet, or from dirty, filthy 
washing facilities. Hundreds of such cases occur 
annually, and they cost employers thousands of dollars. 
Efficiency and health should be sufficient 
reasons for sanitary lavatories and washrooms, gffici'en^y^ 
CleanHness and sanitary conditions make a 
closer relationship between employees and employers, 
and assist in creating loyalty, enthusiasm, and interest, 
essentials for efficiency and success in every enterprise. 

Closets should wherever possible be flush and sani- 
tary. Urinals should be kept clean and 
frequently flushed because if not, they will 
be germ carriers. Everything should be kept sanitary 



238 ECONOMICS OF EFFICIENCY 

and clean. Employers find that where clean and 
sanitary closets are furnished, workers take pride in 
them, and do their part in keeping them clean. The 
closets should be ample and distributed, so that they are 
easily accessible to all parts of a plant. 

Washing troughs and individual wash bowls have taken 
the place of the old wooden bucket. Individual bowls are 
Washing ^^^ most sanitary and preferable. Soap and 
troughs and towels should be Supplied by the employers, 
individual and cvcry worker should have his own indi- 
vidual closet, with a shelf in it for towel and 
soap. It is dangerous to have several using the same 
towel. Prevention is always the watchword, and is 
more preferable to cure. Many employers have janitors 
to look after washrooms, and matrons in the case of 
women. The washrooms in many of our enterprises 
are thoroughly modern, sanitary, and models of clean- 
liness. Such washrooms increase efficiency not only by 
protecting health, but by assisting to create a proper 
spirit of cooperation among the laboring force. 

Each worker should have an individual locker in which 
to keep his clothing and other personal effects. Lockers 
are made of wood, iron, or steel wire, but the 
Jockers" last two are preferable. They should be 
carefully ventilated, and arranged so as to be 
near heated coils, or have drafts of warm air pass through 
them in order to dry clothes if wet on going to work, or 
working clothes if damp on leaving off, at the close of 
work. Frequently, work is of such a nature that it is 
necessary to work in different clothes from those worn 
to and from work. If a change of clothing is necessary, 
both men and women should have their own dressing 
rooms. In many plants, dressing rooms are absolutely 
necessary, and they should be light, cheery, and well 
ventilated. 



WELFARE WORK 239 

Cleanliness of person is one of the fundamental laws 
of health. Many employers reaHze this and furnish 
bathing facihties for employees. Bathtubs, 
shower baths, and, in some cases, swimming batwng^ °^ 
tanks are found. Many employers encour- 
age their workers to take frequent baths, and furnish 
free towels and soap, but they must take their baths on 
their own time. Some of the more progressive employers 
allow workers to take baths once a week on their time, 
and furnish soap and towels. Hundreds of plants have 
shower and tub baths for men, and tub baths for women 
employees. It increases cleanliness at home, affects 
habits of living, promotes health, and creates a closer 
cooperation and loyalty in the working force toward the 
business as a whole. 

Spitting on the floor is a filthy habit common in 
many places. It is a menace to the health of workers, 
and this is sufficient reason that it should 
not be tolerated. Men should be told the evil oftpj^ig^ 
consequences of spitting, and should be warned 
against its practice. Warning signs should be displayed 
in conspicuous places. Cuspidors filled partly with 
sand should be placed in convenient places, and care 
should be taken to have them cleaned frequently. 

The plumbing connected with closets, washrooms, 
and urinals should be regularly inspected. Frequently, 
employers pay dearly for faulty plumbing in 
having a large number of their working force plumbing, 
absent on account of sickness due to it. An 
epidemic frequently starts from a leak in a sewer or waste 
pipe in some part of a plant. If sewage is not emptied 
into a municipal system, but is carried some distance 
and allowed to soak into the ground or emptied into 
some body of water, extreme care should be taken that 
it does not in any way menace the health of workers. 



240 ECONOMICS OF EFFICIENCY 

Organic matter should not be allowed to collect in or 
near a plant, because it may endanger the health of the 
working force. 

The hour at lunch if used advantageously is of value 
in maintaining the efficiency of the working force during 
Rest and the afternoon. The first essential is a whole- 
recreation some, warm lunch, and the second is rest and 
rooms. recreation, A rest room is absolutely essential 

with a working force of women, and is a good business 
proposition with men. A bright, cheery, cozy room 
with lounges, easy-chairs, a piano, a writing-desk, maga- 
zines, periodicals, and a Hbrary gives opportunities for 
rest and recreation, and makes workers more efficient for 
work during the afternoon. Where the work is exacting, 
many employers give rest periods morning and after- 
noon. Rest rooms give the rest and the 
efficiency! Tccreation needed, and girls who become 
temporarily ill find a place for repose. A few 
pots of flowers add to the cheerfulness of a room. A rest 
or lounging room for men with easy-chairs, magazines, 
library, games, and perhaps a piano affords an oppor- 
tunity to rest weary muscles and fatigued brains, and 
makes men better fitted for the work of the afternoon. 
Rest rooms are problems connected with efficiency and 
should be considered as such. They give a direct 
assistance in increasing the efficiency of the afternoon, 
and an indirect, in helping to create a proper attitude 
in the working force toward the business. 

In order to assure comfortable homes, many employers 
build houses, and rent them to employees at a sum 
Assistance j^^t Sufficient to cover expenses. This should 
in procuring not be coufuscd with the practice found in 
homes. many places, where employers build cheap 

houses and rent them to employees at exorbitant rents. 
The aim in this case is extortion, while in the former it 



WELFARE WORK 241 

is to further assure health, comfort, and happiness by 
giving employees cheery and sanitary homes within 
their means. Many build homes and sell them to their 
employees on easy installment payments. The aim is 
to assure more comfortable homes in the first place, and 
secondly, to encourage thrift. Some progressive em- 
ployers, to safeguard the health of their employees, have 
lodging houses, and rent rooms to the employees at a 
rent just sufficient to cover expenses and give a low- 
interest on the money invested. This movement is 
young, but it will not be long before employers will 
realize that it pays on account of its beneficial effect 
upon the health of employees, and the time is not far 
distant when all employers of large numbers of men and 
women will have their own lodging houses. 

The cooperation of the working force with the manage- 
ment is absolutely necessary for efficiency and success. 
An employer may have a finely equipped welfare 
plant with the best possible sanitary and work; its 
hygienic conditions, but if his laboring force ^^po^t^Qce. 
is dissatisfied and discontented, cooperation is impos- 
sible, and the result is greater and greater inefficiency. 
A satisfied, contented, and healthy laboring force, enthu- 
siastic in cooperating with the management, and work- 
ing with only one aim, the welfare of the business as a 
whole, is a most valuable asset of an employer. Many 
employers reaHzing the value of a contented and satis- 
fied laboring force, and its important bearing on both 
success and efficiency, have undertaken many kinds of 
work to further guarantee and assure this frame of mind. 
This class of work is called welfare. Employers who have 
introduced various kinds of welfare work in their plants 
do not hesitate to declare that the motive for so doing is 
purely a business one, as it results in a better, more 
satisfied, and more efficient laboring force. Welfare 



242 ECONOMICS OF EFFICIENCY 

work is found in many varied forms. The character 
Varieties of of the laboring force determines to a certain ex- 
weifare tent the kind of work that may be success- 

work, fully undertaken and carried on. During the 

past few years, employers have been taking more and 
more interest in this kind of work, and they declare that 
as a business proposition it is a good investment. From 
the success of the past few years, one can prophesy a 
great increase in this kind of work in the immediate 
future. Some forms of the work are as follows : benefit 
associations ; educational work ; athletic teams ; club 
houses ; publications ; annual outings and amusements ; 
clubs ; pensions ; suggestions ; savings ; vacations. 

Various methods are in practice for encouraging and 
looking after the various forms of welfare work. Many 
How to large corporations have special departments 

manage wei- in charge of managers with assistants who 
fare work, (jevote their entire time to this kind of work. 
In many cases, other work is assigned, as safety, fire 
prevention, and sanitation. Sometimes a special person 
is in charge of welfare work, and decides what should 
be done to create in workers a proper attitude towards 
the management and the business as a whole. As to the 
kind of welfare work to introduce in an enterprise, study 
should be made of local conditions, and of the character 
of the working force in general, and the forms of welfare 
introduced should be such as will be adaptable and satis- 
factory to the plant. It is a waste of money to intro- 
duce certain forms of welfare work among certain classes 
Need of ^f workers. The importance of welfare is daily 
competent becoming more recognized, and the welfare 
persons. department is assuming greater and greater 
importance. In small enterprises, the work is as impor- 
tant as it is in large, and should be placed under the charge 
of competent persons, and time should be given to look 



WELFARE WORK 243 

after it. The return in creating a better spirit of the 
working force towards their work repays several times 
what is judiciously expended in welfare work. 

A welfare work that is rapidly gaining favor is the 
providing of assistance to workers in case of sickness or 
accidents, and to dependents or relatives in 
case of death. This work is called benefit, fj^ations.' 
Benefits may be of different kinds, as, for 
sickness or disability, for funeral expenses, or in case of 
death, a small amount paid to family or near relatives. 
Various methods are in practice for managing the work, 
but the usual one is for the employees to form 
a mutual benefit association, and to manage benefits 
it themselves. An official of the business 
enterprise is often the custodian of the funds, but this 
is not always the case. Weekly or monthly assessments 
are levied, and are usually graduated with salary or 
wages. When the fund reaches a certain amount, the 
assessment usually ceases until it is necessary to replenish 
it. Frequently, in case of extraordinary charges due to 
unusual sickness or accidents, increased or extra assess- 
ments are made. Joining is often optional, but should 
be compulsory. The management sometimes makes 
occasional contributions, but usually the association is 
self-supporting. The weekly amount paid and the 
length of time of payments in the case of 
sickness or accident are not fixed, but vary ^°'^J° 

. . , manage. 

with associations, as well as the amounts 
paid for injuries, accidents, or death. 

A new feature in benefits has been introduced recently 
in a few large enterprises. The management insures 
employees against sickness or accident in an ^ewfea- 
insurance company. The premiums are ture in 
usually paid by the employees, but sometimes 'benefits, 
a part is paid by the management. Benefits, whether 



244 ECONOMICS OF EFFICIENCY 

from local mutual associations of employees or from 
insurance companies, are absolutely necessary, not only 
as a protection to employers, but, more so, as a protec- 
tion to the employees. Mutual benefit associations have 
given entire satisfaction, but with the lowering of insur- 
ance rates there seems to be a good opportunity for the 
growth of the insurance of entire bodies of workers with 
regular insurance companies. 

Educational work in practice in American enterprises 
is of many forms ; as, apprenticeship schools, lectures, 
Kinds of evening classes, sewing and cooking classes, 
educational the teaching of English to foreigners, and 
work. kindergarten classes for the children of em- 

ployees. Apprenticeship schools occupy such an impor- 
tant place in efficiency that they are considered in detail 
in a previous chapter. The importance of lectures is 
becoming more recognized. The illustrated lecture is 
used with great effect in emphasizing and illustrating 
the various precautions for protection against accidents 
and fire. It is of the utmost importance in instructing 
employees how to care for the body, and how to live 
properly. Employers employing many girls frequently 
give evening classes in sewing and cooking, and some- 
times these classes are provided for the wives of employees. 
Where many foreigners are employed, it is advantageous 
to open evening classes to teach the English language, 
and simple educational subjects. Some employers 
have kindergarten classes for the children of employees, 
but this is rather unusual. The kind of work depends 
in every instance upon the character of the employees. 
Lectures and evening classes of various kinds improve 
the working force, and assist in creating and fostering 
a better attitude toward the management. 

It is a common trait in every boy and man to have an 
interest in athletics, and any encouragement on the part 



WELFARE WORK 245 

of employers is much appreciated by employees. 

Wholesome recreation and outdoor exercise 

are incentives to health and higher efficiency, o/a^etics 

Encouragement is given in various ways 

from contributing to support a team, to furnishing grounds 

and equipment, and giving a certain time for practice. 

Baseball is the favorite game, but football, tennis, and 

cricket receive their share of attention. Finely equipped 

gymnasiums and indoor ball courts are sometimes found. 

Girls usually have their own sports, as tennis, basket 

ball, etc. 

A club house is only a possibility with an enterprise 
employing a large number of employees. Many large 
corporations have built and equipped fine club 
houses for their employees. A small fee is 
usually charged for club house privileges, and the deficit, 
if any, is paid by the management. Wholesome recrea- 
tion and sport are furnished, and their influence upon 
employees is toward creating a better attitude toward 
the management, and a better frame of mind for work. 

Many large corporations print monthly papers, usually 
in magazine form. The papers contain articles and 
news of interest to employees. Every em- Monthly 
ployee receives a free copy, and it helps to papers, 
arouse an interest in the business. 

It is a common practice for business enterprises, large 
and small, to have outings and picnics, and to provide 
various forms of entertainments and amuse- 
ments for their employees. Frequently, the recreation 
great events are the annual picnic and the 
annual ball. Entertainments, dances, and concerts are 
encouraged, and the expenses are wholly or partially 
borne by the management. This recreation side of 
welfare work is important. The providing of proper 
and wholesome forms of amusement works to the ad- 



246 ECONOMICS OF EFFICIENCY 

vantage of employers, in promoting enthusiasm and 
loyalty in the working force. 

The formation of clubs is an important duty of the 
person in charge of welfare work. The working force 
should be carefully studied, and the character 
of the work of clubs formed should depend 
upon the character of the workers. Orchestra, mandoUn, 
and various musical clubs give satisfaction where a suffi- 
cient number of singers and musicians can be secured. 
Chess, whist, bowling, and checker clubs are 
favorites in the average enterprise. Many 
corporations have their own bands, and these furnish 
music on special occasions. Frequently the main work 
of clubs is to promote sociability among the working 
force. Part of the time in the case of girls' clubs is 
frequently given to sewing and cooking classes, and 
the wives of the employees are invited to join. Literary 
„^ , and musical evenings also receive attention. 

Work. ,-,.. , . ^ ,. 

With men, smokers, game tournaments, hter- 
ary meetings, and debates give satisfaction. Consider- 
able discretion should be exercised in choosing the activ- 
ities to be undertaken by a club. What would be suc- 
cessful and satisfactory with one class of workers would 
be an absolute failure with another. Success depends* 
in a large measure upon the discretion of the welfare 
worker in choosing the work that will be appreciated 
by the workers. The club is very valuable in creating 
a better spirit towards the management. 

To encourage thrift on the part of employees, many 
employers either receive savings directly, and pay a 

good rate of interest, or encourage the forma- 
banks ^^^^ °^ Savings associations, and supervise the 

investment of their funds. Frequently, em- 
ployees are given loans at low rates of interest, and re- 
payment on the installment plan for the purpose of build- 



WELFARE WORK 247 

ing or buying their own homes. The employees of 
many enterprises form loan associations, and money is 
loaned to needy fellow workmen. Encouragement to 
save and to own homes gives a better contented class of 
workers, and the provision for loans to the needy fre- 
quently protects deserving employees from loan sharks. 
Many employers own summer places where their 
employees are sent on vacations at low rates. The 
rates charged are just sufficient to cover ex- „ ,. 

T I 1 1 Vacations. 

penses, and employees are assured a good 
healthy outing. There are a few instances where the 
expenses in the case of employees are paid by the man- 
agement, but such are exceptions. If employers do 
not own a summer place, many make arrangements 
with proprietors of suitable places to take their em- 
ployees at reduced rates. Such an interest is always 
appreciated by employees, and is amply repaid by their 
increased loyalty to the business. 

To encourage interest in work and business, many 
employers offer prizes for suggestions that are accepted 
and adopted. Suggestions are sought for dif- 
ferent things, as improvements in methods, 
machinery, and equipment, devices for the protection 
of employees and for fire prevention, and innovations 
that might increase the interest, cooperation, ^ , 
and loyalty of the working force. The kinds 
of suggestions vary with different enterprises. The 
suggestion system encourages employees to take a greater 
interest in their work, and to use their brains to devise sug- 
gestions that will increase the efficiency of the enterprise. 

Many employers believe that they owe their employees 
who have devoted their lives to building up their business 
enterprises a duty to assist them when old age pg^gj^^g 
or incapacity comes. This has led to many 
voluntarily pensioning their faithful employees when 



248 ECONOMICS OF EFFICIENCY 

they reach a certain age. Raihoads introduced the pen- 
sion system before industrial enterprises, and its adoption 
by the latter has been comparatively recent. When 
employees know that their employers take sufficient 
interest in their welfare, to not only assist them to save 
for old age, but to further assist with pensions, it pro- 
duces a better spirit on the part of the working force 
toward their employers. 

Other activities in behalf of employees are found. 

One worthy of mention is where employers give seeds, 

and offer prizes for the best-kept gardens, 

homes °^ lawns, and houses. This increases pride in 

bright, neat, and cheery homes. 

Efficiency demands a healthy, contented, and inter- 
ested working force. It cannot be too strongly em- 
Effects of phasized that efficiency demands more than 
proper en- the physical condition of employees, but also 
vironments. ^j^^jj. ggngj-^l attitude toward the business 
and their employer. The good health of workers de- 
mands the best hygienic and sanitary conditions and 
surroundings while at work and at home, and proper 
habits of hving. The protection of health in enterprises 
should not be left to employers, but should be a legis- 
lative requirement. Every state should have strict 
laws governing the hygienic conditions surrounding 
workers at work. Employers should, from the fact of 
increased efficiency, interest themselves in the home 
surroundings of workers as well as their habits of Kving. 
Efficiency makes it a strict business proposition for 
employers to protect the health of their workers. A 
contented, satisfied working force with a proper attitude 
towards work and employer is a valuable asset, and is 
essential for efficiency. The chief purpose of welfare 
work is to create contentment in a working force and 
a proper attitude toward the management. It is not 



WELFARE WORK 249 

philanthropic, nor does it savor of paternalism, but is 
guided solely by business motives. The kind 
of welfare work in every enterprise depends motJye^^ 
wholly upon the kind of work performed, and 
upon the character of the working force. Discretion 
should be exercised in the introduction of any form of 
welfare work. The increased efi&ciency coming from a 
contented, loyal working force, with their hearts in the 
success of the business and their cooperation in every 
way to make it a success, is sufficient return for what is 
spent in giving pleasure, recreation, and happiness to 
workers. 

QUESTIONS 

1. To what extent is sickness a drain on industry ? 

2. What is the importance of a medical department in a busi- 
ness enterprise ? Give the requirements of an emergency room. 

3. What is the importance of treating slight ailments ? 

4. What is the relation between nutrition and efficiency ? 

5. Why should employers pay heed to the home surroundings 
of their employees? 

6. Why is the midday lunch an important factor in efficiency ? 
Outline a plan for giving cheap and wholesome lunches to em- 
ployees. 

7. Mention the various ways of supplying drinking water. 
What precautions should be taken to assure pure water ? 

8. Why should employers pay particular attention to lava- 
tories and wash rooms ? Give their effects on efficiency. 

9. Mention various methods of teaching cleanliness. What is 
the importance of cleanliness ? 

10. What is the relation between recreation rooms and effi- 
ciency ? What is necessary for a good recreation room ? 

11. Mention several varieties of welfare work. How is welfare 
work conducted ? 

12. What are benefit associations? Mention various kinds. 

13. Mention various kinds of educational work. Give impor- 
tance of each. 

14. Why should precautions be taken in deciding the character 
of welfare work to be undertaken ? 



250 ECONOMICS OF EFFICIENCY 

15. Why are pensions a good business proposition? Mention 
various pension schemes. 

REFERENCES 

Books 

E. Cadbury, "Experiments in Industrial Organization," Chs. 
IV, VII; E. W. Cooke, "Betterment"; L. M. Gilbreth, "The 
Psychology of Management," Ch. X ; M. L. Goss, "Welfare Work 
by Corporations"; E. L. Otey, "Employer's Welfare Work"; 
W. H. Tolman, "Social Engineering"; Tolman and Kendall, 
"Safety," Part IV; G. P. Watkins, "Welfare as an Economic 
Quantity." 



WELFARE WORK 251 

Articles 

O. M. Becker, "How to Fix up a Lunch Room," Factory, Vol. V, 
pp. 28 + ; E. Bjorkman, "The Unnecessary Curse of Sickness," 
World's Work, Vol. 18, pp. 11836-11842; W. H. Cameron, "Do 
Employees' Benefit Associations Pay?" Iron Age, Vol. 90, 
pp. 1090-1091 ; W. L. Chandler, "Benefit Funds," System, Vol. 25, 
pp. 257-261 ; W. I. Clark, " Keeping Workmen in Repair," System, 
Vol. 24, pp. 263-269; W. I. Clark, "A Plan of Shop Medical 
Service," American Machinist, Vol. 35, pp. 1041-1042 ; I. Clark, 
"Medical Treatment for Employees," Southern Machinery, 
Vol. 27, pp. 73-77; "Enlightened Selfishness — The New Cue of 
Big Business," Current Opinion, Vol. 56, pp. 144 + ; F. M. Feiker, 
"What More Than Wages," Factory, Vol. 6, pp. 303 +; W. A. 
Grieves, "Mutuality," Iron Age, Vol. 87, pp. 908-911; E. K. 
Hammond, "How to Fix up a Lunch Room," Factory, Vol. 11, pp. 
332 + ; W. B. Kaenpffert, "Welfare Work in Germany," Scientific 
American, Vol. 106, pp. 193-194; R. C. Lewis, "The Emergency 
Room of the Yale and Towne Manufacturing Company," Human 
Engineering, Vol. 2, pp. 1 29-131 ; Wm. O'Neil, "The Recognition 
of the Surgeon in Industrial Operations," Proceedings of the First 
Cooperative Safety Congress, pp. 291-297 ; H. F. J. Porter, "How 
Suggestion Systems Work Out," American Machinist, Vol. 35, 
pp. 371-373 ; H. F. J. Porter, "A Clothes' Closet for Each Work- 
man," Factory, Vol. 11, pp. 27 + ; H. F. J. Porter, "Industrial 
Betterment," Gassier, Vol. 38, pp. 303-314; D. C. Shafer, 
"Keeping Employees in Good Trim," Factory, Vol. 5, pp. 148 + ; 
C. A. Tupper, "Welfare Work in German Industries," Iron Age, 
Vol. 89, pp. 239-241. 



CHAPTER XII 

Accidents 

During the past century, improvement in machinery 
progressed at a rapid rate, and is a chief cause of our 
Machiner industrial development. Decade after dec- 
and the ade saw more intricate and compUcated 
increase of machinery introduced into our factories, 

accidents. j r j j. i, r 

and found greater numbers of men, women, 
and children attending thousands of machines. The 
number of workers annually killed, maimed, and in- 
jured has increased at a very rapid rate, until the annual 
death rate in the United States due to industrial acci- 
dents is greater than the number killed during any 
battle of the Civil War. 

Every industry has connected with it a certain amount 
of risk, and in no case is risk entirely absent. Many ac- 
cidents which daily occur are simply and solely 
acddents ^^^ result of conditions beyond human con- 
trol, and inseparable from the ordinary 
course of existence. Accidents may be divided into 
two classes : first, those arising from causes beyond 
human control; and secondly, those due to 
abie^° causes preventable by human agencies. The 

first class, or unavoidable accidents, cannot 
be diminished by man, but the second, or preventable 
accidents, are due to the fault of employers or employees, 
Pre nt bi ^^^ with due care and precaution may be 
avoided. The prevention of accidents has 
during the past few years attracted attention, and is 

252 



ACCIDENTS 253 

becoming daily more recognized as an important factor 
in efficiency. Many are devoting time to its study, 
and it is gradually forging its way to the foreground 
as an important duty of every business man. 

The Germans lead all countries in the collection of 
accident statistics. According to their statistics of a 
few years ago, 42.05 per cent of all accidents 
were due to the unavoidable risks of industry, Occidents 
and 57.95 per cent to the neghgence of em- 
ployers and employees. During the past few years 
considerable advancement has been made in this country 
in the taking of statistics, and several states have passed 
laws compelHng the accurate keeping of sta- 
tistics of accidents. The statistics which we ^^tistics 
have, appall us by the number of accidents 
which occur annually, and by the fact that a large per- 
centage is due to negligence in some form or other on 
the part of employer or employee. A well-known 
statistician is well within the Kmit when he declares 
that 50 per cent of all accidents in the factories of Amer- 
ica are preventable. 

Until reliable statistics are available, people cannot 
tell the great economic loss from accidents. A con- 
servative estimate of the number of men 
killed annually in industrial accidents in the accidents"™ 
United States is five thousand, and the num- 
ber of accidents two hundred and five thousand. Cal- 
culating the economic loss on the basis of insurance 
tables at $7265 for each man killed and $660 for each 
man injured would give an annual loss to the country of 
more than one hundred and seventy-one milHon dollars. 
When we hear so much of conservation and the elimina- 
tion of waste, we cannot help thinking that here is a 
neglected field, and one where there is a great oppor- 
tunity to assist industry and humanity at large by 



254 ECONOMICS OF EFFICIENCY 

carefully investigating accidents, and putting into prac- 
tice more efficient means for their prevention. Accident 
prevention is a study of recent development, and is one 
which should receive considerable attention in the future. 

It is surprising how stupid the average American em- 
ployer has been until recently to many of the essentials 
Profits the ^^ efficiency and to important factors in lower- 
goal of ing costs. The American employers of the 
business. nineteenth century were utterly indifferent to 
the suffering, mutilation, and even kilKng of their em- 
ployees. But later, when it was brought home to them 
that accidents represent a great economic loss which, 
if prevented, would assist in increasing profits, they began 
How to to take an interest in accident prevention. It 
arouse em- carries home the fact that the goal of business 
terest^in*'^' activity is profit seeking. In the struggle 
accident for profits, the business man is heartless and 
prevention, cruel to those around him. The only way 
to soften his heart to the interest of those under him is to 
make clear to him that consideration and care would 
affect his profits. It must be a pure business proposition 
assisting in some way to reach the goal, profit making. 
The new efficiency movement is proving to be a boon 
to industry and to humanity by making employers 
realize that a proper consideration of the human ele- 
ment is the chief means of promoting efficiency, and a 
great factor in increasing profits. It is not only in the 
Accident interests of humanity, but of profit making, for 
prevention the employer to use every means in his power 
and to secure prevention against the manifold 

ciency. (j^nggj-s to life and Hmb, which are the accom- 
paniment of modern industrial conditions. It is only 
recently reaHzed that to protect the worker against the 
many dangers attending every branch of industrial 
activity, is a necessity in attaining efficiency. 



ACCIDENTS 255 

All accidents cannot be prevented, because accidents 
in greater or lesser numbers must accompany our com- 
plex industrial system. Unavoidable acci- _.• • • 

1 Ml 1 1 -111 Divisions 

dents will occur, and cannot be avoided, but of the study 
the preventable, which total in many indus- °^ accident 
tries to more than half of the accidents, can P''®^®^'°'^- 
be avoided. It is to this field that the study of accident 
prevention belongs. The new study may be divided 
into different branches ; as, — first, a careful study of 
the causes of accidents; secondly, the development of 
care on the part of employers and employees ; thirdly, 
the use of safety devices ; and fourthly, the proper 
design and construction of plant and apphances. Every 
effort should be made to find out how an accident hap- 
pened, the machinery involved, the time of day, and 
how long the operative had been working. Each acci- 
dent should be carefully studied to ascertain its cause 
so as to prevent repetition. When the cause of an acci- 
dent is discovered, the remedy should be sought and 
appHed so that a similar accident will not occur. In 
the field of accident prevention, too great em- 
phasis cannot be placed upon the absolute causes" 
necessity of a most careful investigation into 
the causes of accidents. In a large factory, it pays to 
have experts devote their entire time to studying the 
causes of accidents, and devising apphances and de- 
vices for prevention. In a small enterprise, this work, 
if not carried on by the employer himself, may be as- 
signed to one of the foremen, and encouragement in 
some material way should be given, so that he will be 
encouraged to exercise his best abihty to prevent 
accidents. 

Numerous causes have, at one time or another, been 
given for the happening of accidents. A few of the 
most common are ignorance, carelessness, unsuitable 



256 ECONOMICS OF EFFICIENCY 

clothing, insufficient lighting, dirty work places, defects 
of machinery and structure, not proper fire 

Causes of , • i- r S • 

accidents. precautions, overcrowding of machinery or 

materials, fatigue, poor sanitary conditions, 

sHppery floors, walks, or stairs, failure to use safeguards 

provided, and intoxicants. 

Many accidents, and often those of a serious nature, 

are due to the ignorance of workers. Workers are 

permitted to work on dangerous machinery 
Ignorance. .1 • ^ . • • . 

Without either proper training or instructions. 

Education is the chief remedy, and every workman 
engaged in work around machinery should receive special 
instructions in how to avoid accidents and in 
a language which he understands. Special 
care should be taken in the selection of workmen for 
machines, and minors should not under any considera- 
tion be allowed to work around dangerous machinery. 
Strict rules should be formulated in what should be done 
to avoid accidents ; these should be given in pamphlet 
form to all workers, and the foremen and bosses should 
insist that they be frequently read. Severe punishment 
should be imposed upon any one who breaks the rules. 
Warnings in the form of signs should be distributed 
about plants. Bulletins should be kept in conspicuous 
places, and upon them cuts from papers of how accidents 
occur and general information about the occurring of 
Bulletins accidents should be posted from time to time, 
and All workers should be encouraged to read the 

lectures. bulletins. Good pictures will get better re- 
sults than reading notices. Lectures should be given 
occasionally with the use of lantern sHdes, and compul- 
sory attendance should be insisted upon. If these few 
simple precautions are taken by an employer, the num- 
ber of accidents would be greatly diminished. 

Carelessness is one of the chief causes of accidents. 



ACCIDENTS 257 

It cannot be completely blotted out of human nature, but 
if certain precautions are taken, accidents from 
this cause may be greatly reduced. Chief ness^^^' 
Factory Inspector J. C. Delaney of Pennsyl- 
vania dwells at some length in his annual report for 
1909 upon the danger of carelessness. He says that 
although workers are aware of unguarded parts, yet 
some will do their work in a way that borders on criminal 
neghgence. A few of the often repeated careless acts 
which he mentions are, placing a ladder upon „ , 
a revolving shaft and mounting thereon to ad- 
just a belt, crawHng under machinery in motion, reach- 
ing across dangerous parts of machinery in motion, 
cleaning and oihng machinery in motion, working in 
baggy sleeves or with flying tresses of hair about dan- 
gerous gearing and belting, jumping on or ofi elevators 
in motion, and adjusting belts upon rapidly revolving 
wheels and speeding overhead cranes. He further 
comments that as long as neghgence similar to this oc- 
curs, accidents avoidable and serious will continue to 
happen though the employer of labor exerts himself to 
the utmost to prevent them. 

These are a few of the many acts of carelessness which 
are seen in the average plant. The chief remedy is 
discipHne, and its strict enforcement. Back _ ,. 

. .i . ,\ . . . Remedies. 

of disciphne, it cannot be too strongly em- 
phasized that success depends largely upon the careful 
selection of superintendents and bosses, and infusing 
them with the employer's earnest desire to avoid acci- 
dents. This sincerity soon makes itself felt with the 
workers. Strict factory regulations should be care- 
fully drawn up and strictly enforced. Workers should 
be instructed in their meaning, printed copies should 
be distributed, and the management should insist that 
they be frequently read. Every infraction of the regu- 



258 ECONOMICS OF EFFICIENCY 

lations should be severely punished. Other precautions 
that prove of valuable assistance are warnings placed 
in conspicuous places, bulletin boards with clippings of 
recent accidents in different parts of the country, pic- 
tures clipped from papers and magazines showing acci- 
dents, and lectures with lantern slides showing how 
accidents occur, and how they may be avoided. Care- 
less operatives and violators of rules should be discharged 
if sufficient warnings fail to reform them. These few 
inexpensive precautions will prove of great assistance in 
cutting down expenses through the prevention of many 
accidents. 

Hundreds of accidents are caused annually by cloth- 
ing being caught in moving machinery. The wearing 
ci thi ^^ clothing should be under the supervision of 

the employer, and should receive his close 
attention. A loose sleeve, coat, or pant leg, a flowing 
skirt or a flying cravat, if caught in any part of moving 
machinery may cause a serious injury, and sometimes 
death. In the case of men working around or attending 
machinery, a tight-fitting, closely buttoned waistcoat, 
with close-fitting sleeves ending at the elbow, and close- 
fitting pant legs make the most desirable working ap- 
parel. It is advisable for an employer to de- 
dress" ^^^^ upon a Standard suit, and insist that all 
working men wear it. Women should never be 
allowed to work around high-speed machinery. A stand- 
ard dress consisting of a tight-fitting waist with close- 
fitting sleeves terminating at the elbow, and a close- 
fitting skirt should be worn by women employees in 
any plant where they are around machinery in motion. 
Women working around machines should not wear 
aprons, and should have long hair under close-fitting 
caps. These precautions are simple and inexpensive, 
and if universally adopted, would annually prevent 



ACCIDENTS 259 

thousands of accidents, and save many thousands of 
dollars as well as prevent much suffering and misery on 
the part of employees and those dependent upon them. 

Poor lighting of buildings and rooms used for produc- 
tive purposes is responsible for many accidents. In 
many plants, men are forced to go back and 
forth through dark passageways, through lighting 
which run rapidly revolving shafts and high 
speed belts. A false step usually means a serious acci- 
dent. An abundance of Kght, natural or artificial, 
should be furnished in every part of a plant. Dirty 
windows often make a place darker than need be. Sta- 
tistics prove that the greatest number of accidents occur 
during the months of diminishing light. Even if a 
plant has good natural light facilities, provision should 
be made for the providing of sufficient arti- Precautions 
ficial light on short notice. Every stair- to assure 
way, hallway, platform, runway, and passage- ^^*®*y- 
way should be supplied with sufficient Hght, either 
natural or artificial, to enable persons to see distinctly 
where they are going, and if there are any obstacles in 
the way. During cloudy days, natural light is frequently 
not sufficient, and at once, artificial light should be 
turned on. In fall, winter, and early spring, oftentimes 
during the day, artificial Kght is necessary. Proper 
lighting is not only necessary for accident prevention, 
but is a prime necessity for efficient work. 

Cleanliness is as important in a plant as in a home. 
If tools, waste materials, and goods in process of manu- 
facture are allowed to litter the floor, there is _, ,. 
always danger of an employee tripping over 
them, and being injured by the fall, or being thrown 
against moving machinery, which invariably means a 
more or less serious accident. Everything in a factory 
should have its proper place. Every workman should 



26o ECONOMICS OF EFFICIENCY 

be severely disciplined if found casting tools or materials 
in aisles, under moving machinery or in out-of-the-way 
places. Order is the first law for efficient work, and 
where there is order, many accidents are prevented. 

Machinery and structures gradually wear out, and 
often unexpectedly give way and cause accidents. 
Breakages are frequently caused by defects 
in parts of machines or structures. Extreme 
care should be exercised in buying machinery, tools, 
equipment, and construction materials to make certain 
that only the best are obtained. Platforms, 
buying. runways, and stairways should be built with 
extreme care, and only the best materials and 
workmanship allowed. As a protection against acci- 
dents, machinery should not be overfed, or machinery 
or equipment overloaded. Frequent and close 
inspections should be made of all parts of ma- 
chinery and of equipment to discover any signs of wear, 
or any defects which may not be apparent at first sight. 
Certain parts of machines often require renewal, and 
inspections should be such as will show when it is needed. 
Too great emphasis cannot be placed upon the necessity 
of regular and frequent inspections by competent men 
of all equipment, machinery, and appliances, so that 
defects and unsafe conditions may be discovered promptly 
and remedied. The losses arising from interruptions in 
continuous production due to breakages amount annually 
to thousands of dollars. The buying of machines, equip- 
ment, and materials of the highest grade and quality, 
and careful inspection are essential factors in a plant in 
preventing accidents and in lowering costs of production. 
Fires cause many accidents and injuries as well as 
destruction of much property. Accidents 
may be greatly diminished by careful con- 
struction and equipment of plants, and by proper 



ACCIDENTS 261 

protective measures by the management. Every building 
used for manufacturing or business purposes should be 
provided with a sufficient number of exits and fire escapes, 
to permit prompt egress from the building in case of 
fire . All doors should open outward, and no 
door should be locked, bolted, or fastened 
while employees are inside. Fire escapes should be 
secure and kept clear. Fire drills are of great service 
in preventing panic, and occasional drills under a com- 
petent instructor greatly lessens the risk to Hfe in case 
of fire. 

Many employers, in order to economize space, place 
machines too close together. The width of passages 
between machines is reduced to the danger 
point. A certain amount of space is necessary ^^^ "®°* 
for the proper operating of machines and the 
handling of materials, and if this is encroached upon, 
the probability of accidents is increased. Space should 
not be economized to the point that risks to workers 
are increased. 

SHppery floors form an element of danger, especially 
in conjunction with unguarded machinery. Even if a 
slippery floor is not near unguarded machinery, or 

V u J r n 14.- • • • Slippery 

it may cause a bad fall resultmg m serious m- floors, 
jury, and this is particularly so, if workers are stairs, and 
carrying heavy loads. Many accidents are ^^ 
caused by slippery treads on stairs. If treads become 
slippery, either renew or cover with some material that 
does not become slippery from wear. All floors and 
walks should be kept in good condition, and free from 
holes into which a person may step. If walks or stairs 
are exposed to the weather, care should be exercised to 
prevent them from becoming covered with ice. Hun- 
dreds of accidents occur annually from falling on slip- 
pery walks and stairs. Falls from ladders explain the 



262 ECONOMICS OF EFFICIENCY 

cause of many hundreds of accidents each year. Care 
is not taken to see if the bottom of the ladder is on a 
slippery floor, walk, or ground. Small pieces of rubber, 
lead, or sharp iron points fastened to the ends of ladders 
are effective devices to keep them from slipping. All 
floors should be as free as possible from water, oil, and 
grease, and if there is any danger of slipping, powdered 
rosin, freely used, prevents many falls and accidents. 

Stairways should be provided with handrails. A 
handrail has often saved a person from a bad fall. 
Stairways, even when inclosed by side walls, 
should have a handrail on at least one side, 
that nearest the right hand of the person going down. 
Platforms should always be railed and skirted at the 
edge to prevent materials, tools, and persons from falling 
off. Elevated walks and runways should always be 
railed. In every case, frequent inspection should be 
made to see that supports and railings are always in 
the best condition. Many serious accidents have oc- 
curred from persons leaning against railings which were 
not secure, and from too many persons, or a too heavy 
weight, being allowed upon elevated platforms and run- 
ways. 

It is advisable for every employer to prohibit absolutely 
the drinking of any alcohoKc drink during working hours, 
Use of s-iid to discourage its use outside of the plant, 

alcohol and No man under the influence of liquor should 
accidents. ^^ allowed in a plant, much less to work, be- 
cause he endangers his own life and the lives of his fel- 
low workers. A man who is usually careful is apt to 
become reckless under the influence of liquor. The 
regular use of alcoholic drinks in any quantity soon 
makes a worker an undesirable person in a laboring force, 
and unfit for efficient work. 

It has been proven that the greatest number of ac- 



ACCIDENTS 263 

cidents occur between ten and eleven thirty in the mom- 
ins;, and the hour and a half before the half ,^ ,. 

I . ....-,- Fatigue. 

hour previous to quitting time m the after- 
noon. During the last half hour before noon, and be- 
fore quitting time, the final spurt reduces danger. Dur- 
ing these hours, there is the greatest fatigue, and it 
clearly proves the relationship between fatigue and 
accidents. The worker, when he becomes tired, has no 
longer full control of his muscles, and loses a certain 
amount of alertness and watchfulness. The margin 
of safety in modern industry is small. The swift ma- 
chinery of modern factories requires attendants to push 
and guide materials in close proximity to merciless 
cutting tools. Many types of machines demand work- 
ing so close to dangerous parts that the misplacement 
of the hand only a small fraction of an inch means 
mutilation. The worker is at first cautious and atten- 
tive, and avoids danger because his attention 
is alert, but as sensibility decreases at the accMeirts*° 
onset of fatigue, his attention diminishes and 
he does not see danger. Reduce the alertness and the 
exactness with which the body responds to the demands 
of its labor, and by just so much you increase the liability 
that a hand will be displaced that fraction of an inch 
which means mutilation. 

Long hours and over-fatigue are two important factors 
of inefhciency and leading causes of accidents. When 
a worker's health and strength are under- 
mined by overwork, he becomes incapable of 
alertness, attention, and watchfulness, and gradually 
becomes defenseless against accidents. Low vitahty, 
poor health, and nervousness make an em- 
ployee unfit for efficient work, and if allowed 
to attend or work around moving machinery, the chances 
of accident are increased at a rapid rate. Efficiency 



264 ECONOMICS OF EFFICIENCY 

forbids long hours, and the undermining of the nervous 
system and health through overwork, and if its demands 
are followed, there will be a great decrease in the number 
of accidents. 

It is fatiguing to keep attention on one thing for any 
length of time, and how much more so must it be, to 

closely watch rapidly moving machinery. In- 
tense work' tense continuous work increases inaccuracy, 

diminishes alertness and watchfulness, and at 
the same time increases the chance of deviation of a 
fraction of an inch in the movement of a hand which 
results in accident. Employers should reaHze that 
workers should be protected from accidents and from 
working to a point where health is impaired. Extreme 
care should be exercised in employing as attendants for 

rapidly moving machinery only those in the 
^n^erv s o \^Qc,t possible health, and with sound nervous 

systems. The time of work should be decided 
by a study of its intensity. A worker should under no 
consideration be allowed to attend rapidly moving ma- 
chinery with a tired mind or body. Frequent intervals 
of rest are absolutely necessary. The frequency and 
the time depend upon the character of work. By pre- 
cautions in the employing of suitable employees, and 
by providing proper intervals of rest, accidents will 
not only be prevented, but efhciency will be greatly 
increased. 

Gases, vapors, dust, and smoke increase chances of 
accidents. Intense heat and high humidity decrease 
Gas, vapor, alertness and watchfulness necessary for the 
dust, and avoidance of accidents. Proper sanitary sur- 
smoke. roundings are of greater importance to good 
health than to accident prevention, but the two are 
closely related, because whatever lowers the vitality of 
workers decreases their power to avoid accidents. All 



ACCIDENTS 265 

unsanitary surroundings increase the probability of 
accident as well as imperil the health of workers. 

"Familiarity breeds contempt" is an old saying, and 
no greater proof of its truth may be found than in the 
carelessness of men who are daily in close ^en grow 
proximity to dangerous moving machinery, careless of 
A man when first working around dangerous ^^^&^^- 
parts of machinery takes pains to avoid the possibility 
of accident, but after a time becomes so used to his sur- 
roundings that he unconsciously takes a great many 
chances which he would at first have taken pains to 
avoid. It is well known that men grow careless of 
dangers. In the bustle of work, men forget even or- 
dinary precautions. An electric circuit marked "Dan- 
gerous, 2000 volts" will be shunned for a week, but 
at the end of that time will be treated as contemptuously 
as an ordinary door battery. The condition 
of mind which does not heed danger may be preven°. 
overcome in a large measure by rules, cau- 
tions, signs, and by simple protective arrangements 
which serve to call attention to the existence of danger. 
Careful instruction and supervision in the formation 
of habits of carefulness in heeding danger is the chief 
remedy. Rules and severe discipline when they are 
broken are necessary, and further assistance may be 
given by placards, signs, bulletins, and lectures. If 
these precautions are followed, men will become accus- 
tomed to taking pains to avoid dangerous parts, and the 
constant reminders will prevent them falling into for- 
ge tfulness', and taking foolhardy risks. 

The greatest thing which an employer may do to 
make his workers as safe as possible, is to Necessity 
provide adequate safeguards for dangerous of safe- 
parts of machinery and equipment. All ma- s"^^*^^- 
chinery is more or less dangerous. A certain number 



266 ECONOMICS OF EFFICIENCY 

of accidents are unavoidable, but extra precautions 
should be taken to lessen the avoidable. It is a cer- 
tainty that a large number of accidents would not occur 
if machinery and surroundings were made safe. 

Employers differ in their opinions as to what is dan- 
gerous and what is safe. Whether employers scout at 
The old the idea of safety through safeguards or not, 
view of they should be made by law to safeguard all 

safeguards, d^ngerous parts of machinery and plant equip- 
ment. The progressive employer provides safeguards 
because he realizes that it is good business. They are 
a guarantee of continuous production, and one of the 
factors working towards higher efficiency. The anti- 
quated employer laughs at the idea of protecting a 
planer and declares, "It has been exposed like that for 
years and I have not had an accident." Such an argu- 
ment is nonsensical. If such an employer will not 
safeguard his machinery, the state should legally force 
protection. 

Employers should be required under severe penalty 
to equip machinery and working places with every prac- 
tical safety device that it is possible to secure, 
safeguard Successful business teaches us that it is cheaper 
to cover a gear than to pay for a finger. If 
complete guards were provided, so that every acci- 
dent due to being caught in moving machinery was 
avoided, it would not only prevent much suffering, 
but would add annually millions of dollars to the profits 
of manufacturers. The proof of the adequacy of a 
safeguard is its power to prevent accidents. Safeguards 
are usually simple devices and inexpensive. A question 
arises as to what is to be safeguarded. Mr. 
der's^iist Calder gives a very satisfactory list, which is 
as follows : all engaging toothed or other gears, 
rolls, drums, and slides of every description on any ma- 



ACCIDENTS 267 

chine ; the spaces between fixed and moving parts of 
any machine, or between the latter and the structures 
near it, leaving insufficient working clearance, in no case 
less than eighteen inches for any person employed thereon 
or near it ; pulleys and clutches ; belts, bands, and driv- 
ing chains ; flywheels and starting balance wheels ; 
shafting and spindles, and all couphngs or projections 
thereon, or upon reciprocating or other moving parts of 
machines ; counterweights and balance weights and their 
suspensions ; the actual element in every machine which 
comes in contact with work, and cuts, shears, or other- 
wise operates upon the latter, for instance, the circular 
saw blade in the sawmill, the punch and die in the press, 
the revolving cutter in the milhng machine, etc. In- 
sistence should be that these elements be always guarded 
where found, unless they are of such form and in such a 
position as to be as safe to all as if guarded. This gives 
a good working category of machinery risk. To this 
Kst should be added elevators, common utiHties, and 
structures in power generation and transmission. 

Safeguards should be durable and easily distinguish- 
able from parts of a machine or equipment. A device 
which is widely used in Europe, and should be Drawing 
adopted in this country, is to paint guards, attention to 
safety devices, and, wherever possible, the safeguards, 
moving parts of machinery bright red. This is an 
effective way of drawing attention to dangerous parts. 

The proper guarding of all dangerous parts is the de- 
signer's duty. Purchasers should insist in buying 
machinery that all dangerous parts are pro- propej. time 
tected. The proper time for providing safe- for provid- 
guards is while a machine is in the building, ^^s safe- 
because here it may be done with the least ^^^^ 
effort and the least cost. The devising of a guard that 
will least interfere with the function of a machine may 



268 ECONOMICS OF EFFICIENCY 

be done better by the designer than by any one else. If 
dangerous parts are not safeguarded in the making, then 
it falls upon the user to protect his workers by various 
devices. There are many patented safeguards in the 
market, but frequently the user is called upon to fur- 
nish home-made guards. A home-made wire screen is 
as effective a safeguard to a wheel as an expensive one. 
It is not necessary to have a safeguard a finished piece 
of work, because as long as it protects that is all that is 
asked. If buyers would refuse to buy machines unless 
the dangerous parts were protected, it would not be long 
before only machinery with all dangerous parts properly 
safeguarded would be found on the market. 

Many workmen object to safeguards, claiming that 
they are a nuisance and interfere with work. Every 
Workers Safeguard should be so designed that it does 
and safe- not interfere with the function of the machine, 
guards. j£ j|. (^qcs, a Httlc study will devise a sHght 
change so that work will not be interfered with. Fre- 
quently, workmen objecting to a guard will not hesitate 
to remove it. Men who have worked for years without 
guards frequently develop a spirit of bravo, look upon 
them as signs of weakness, and scorn them as a reflection 
upon their cleverness to avoid accident. When safe- 
guards are introduced, workers should be induced to use 
them. They should be made to see that their purpose 
is for their protection, and that their cooperation should 
be with the management to make their use efficient in 
preventing accidents. Inspectors should see that no 
guards are removed, and if a workman is found removing 
one, the punishment should be severe. 

The furnishing of safeguards will not assure preven- 
tion of accidents unless employees cooperate 
fully and willingly in the effort to pro- 
tect them. Workers should feel that all precautions 



ACCIDENTS 269 

taken for safety are for their benefit. Many safeguards 
must be removed for cleaning, oiling, or adjusting ma- 
chines, and workers should replace them as soon as the 
work is finished. If a safeguard is provided and left 
off, there might just as well be no safeguard. Rules 
should be obeyed, and every case of infringement should 
receive prompt and severe discipline. Employees should 
be instructed to report any dangerous places or signs of 
weakness in any part of the equipment or machinery, 
A reward for the prompt reporting of danger will often 
bring attention to weakness in time to be remedied be- 
fore accident. Every employee should be taught to 
be cautious, and be encouraged to warn feUow workers 
of dangerous places. 

The oiHng of machinery and shafting while in motion 
should not be done, unless it is absolutely necessary. 
Employers should equip all parts of running 
machinery with automatic oil cups, and these oj^qI^'^^ "^ 
should be filled while machines are at rest. If 
there are no automatic oil cups, and it is necessary to 
oil machinery and shafting in motion, certain precautions 
should be taken. OiHng should be done by ex- 
perienced men who wear tight-fitting clothes, 
and use long-necked oil cans so as to keep their hands 
■out of danger. With shafts and machinery a few feet 
above the floor, special platforms should be built for 
oiHng purposes. Sometimes ladders are used in oiHng 
shafting; if so, special care should be taken that they 
have special hooks at upper ends to fit over the shafts, 
and sharp points at the lower to prevent sHpping. The 
safest way to oil machinery and shafts is by automatic 
oil cups, and these should be introduced, if not already 
in use. 

Cleaning machinery while in motion is the cause of 
thousands of accidents. The chief cause of danger is 



270 ECONOMICS OF EFFICIENCY 

in the soft materials used in cleaning. These catch easily 
Dangers in ^^ gears or in running parts of machinery, 
cleaning and draw in fingers, hands, and sometimes 
machinery, ^rms, and injury follows. Nearly all such 
accidents are preventable, because, with few exceptions, 
machines may be cleaned when not running as well as 
when in motion. If cleaning is absolutely necessary 
with moving machinery, it should be done only by cau- 
tious and experienced men. Under no circumstances 
should minors be allowed to clean or oil machinery in 
motion. With precautions in cleaning and in oiling 
machinery and shafts, nearly 25 per cent of industrial 
accidents may be prevented. 

A man with poor eyesight is of little service in the 
industrial field. Hundreds of workers yearly lose or 
impair their efficiency by accidents impairing 
o/the^eyes their eyesight. In many factories, little is 
done to protect this most important member 
of the human body. Workers operating machines where 
particles of metal or hard substances are being cast off 
or likely to be cast off, and workers in rooms where small 
particles of hard substances are flying about, should have 
their eyes protected by spectacles or goggles. Screens 
and hoods should be further safeguards on grinding 
machines and cutting machines where particles of hard 
substances are given off. Care should be taken in the 
choice of goggles. The lenses should be strong enough 
to stand a hard blow, as many serious accidents occur by 
the breaking of light, thin lenses. The goggles should be 
cleaned daily, because this avoids many cases of infection. 
Precautions The cleaning may be done by either dipping 
with in boiling water, or immersing in an antiseptic 

goggles. solution. A promiscuous use of goggles should 
never be allowed in any plant, as many diseases, as tra- 
choma, iritis, etc., are transmitted by such practices. 



ACCIDENTS 271 

Every year many men lose their eyesight by per- 
mitting other workmen to remove foreign bodies from 
their eyes. A worker on getting something 
into his eye tries to remove it by rubbing, or ^^tions 
by the use of a dirty handkerchief or rag which 
happens to be near ; if he fails, he calls to a near-by worker 
to remove it. Infection is often transmitted through the 
use of dirty handkerchiefs, dirty rags, or fingers when 
used to push back the eyelids, and frequently 
means loss of sight. In every plant, there ^g^^*! 
should be proper faciHties for removing for- 
eign matter from the eyes, and some one trained in so 
doing. Every case should at once receive proper treat- 
ment and then there is Uttle danger of infection. 

In the United States, the people at large need the 
creation and the development of an accident preventive 
spirit. In Europe, and in Germany in par- Accident 
ticular, accident prevention is kept constantly preventive 
before the public, the legislatures, the em- ^p""'*- 
ployers, and the workers. It is taught in the schools, 
and colleges devote some time to it. Trade and technical 
schools make courses on accident prevention compulsory 
parts of their curricula. Insurance rates are based upon 
the state of accident prevention found in the individual 
plants. The political and industrial leaders unite their 
strength in discovering various ways of extending, and 
of making more effective, accident prevention. 

In this country, we should in the future devote more 
time to educating the people in the science of accident 
prevention. There should be compulsory courses in the 
prevention of accidents, and in first aid to the injured, in 
every high, trade, and technical school. Fre- How to be 
quent use should be made of the lantern and attained in 
sHdes, because in this work the lantern may ^^^"ca. 
be used effectively. Advanced courses in accident pre- 



272 ECONOMICS OF EFFICIENCY 

vention should be compulsory in every engineering school. 
Periodicals and newspapers should do their share by 
contributing numerous articles on accident prevention. 
More attention should be given to educating the em- 
ployee within a factory. Care should be taken to form 
with every employee habits of carefulness, and of acting 
unconsciously in looking out for self first, and the other 
fellow always. Every new employee should be given 
careful instructions as to the dangerous parts of machines 
and of every part of the plant where his work takes him. 
He should not be allowed to take his place in the plant 
until he is thoroughly familiar with his work, and able 
to protect himself against accidents. In the case of for- 
eigners, they should be instructed in their own language 
in the proper and safe ways to do work. The aim should 
be to inculcate habits of caution. Warnings and signs 
should be put in conspicuous places near dangerous ma- 
chines and places. Strict rules should be drawn up 
governing the actions of employees in a plant, these 
should be closely followed, and infringement should be 
severely punished. The rules should be printed in a 
small booklet and each employee furnished wdth a copy. 
With foreign employees, the booklet should be printed 
in their language. Bulletin boards should be placed in 
conspicuous places, and clippings of accidents should be 
regularly posted. Pictures or photographs of accidents 
posted on bulletin boards are always seen, and make an 
impression. Lectures with lantern slides should be 
given at regular intervals, and compulsory attendance 
should be insisted upon. If these precautions are fol- 
lowed, they will soon develop habits of caution and a 
preventive spirit with the people at large. 

An important factor in teaching accident prevention 
in Europe is the accident prevention museum, or per- 
manent exhibition containing working exhibits of safety 



ACCIDENTS 273 

devices for machinery and equipment in all kinds of in- 
dustries. Amsterdam, Paris, Vienna, Budapest, Munich, 
BerHn, and other places have their accident Accident 
prevention museums. Most of these are kept prevention 
up to date, and have the most improved safety ™^seum. 
devices on exhibition and explained thoroughly at regu- 
lar hours each day by competent instructors. This is a 
field for great development in accident prevention in 
America. Each large industrial city should 
have its accident prevention museum of work- ducTed°°" 
ing exhibits, always up to date, and free of 
admission to the public. Illustrated lectures should be 
given from time to time, and efforts should be made to 
get the working people to attend. The cooperation of 
employees is absolutely necessary. The expense of the 
museum should be borne by the people at large, and form 
part of the expenditures of the town or city. The small 
cost to each person would be a thousand times compen- 
sated by its influence in preventing accidents. 

The frequency of occurrence of accidents in any enter- 
prise depends largely upon the character of supervision, 
and the management. The executive head ]y[anage- 
should be earnest and sincere in his efforts to ment, 
prevent accidents. Great care should be bosses, and 

• J • 1 • • i J i. J accidents. 

exercised m choosing superintendents and 
bosses, and among other things to infuse into them the 
earnest desire of the management to avoid accidents. 
The safety of employees depends in a large measure upon 
the sincerity and the earnestness of those performing 
managerial duties. Every factory regulation should be 
carefully followed, and every precaution to avoid accident 
should be taken by every superintendent and boss. This 
conduct on their part will be reflected in the conduct of 
the workmen. The caution exercised by those in author- 
ity will unconsciously be imitated by the workers, and 



274 ECONOMICS OF EFFICIENCY 

will be a strong factor in instilling habits of caution and 
carefulness. 

Sickness, accident, and death are three grave realities 
that the average business man is ill prepared to meet. 
The presence of any one means increased costs 
room^^°*^^ and the temporary lowering of industrial effi- 
ciency. It pays not only to take precautions 
to prevent the occurrence of accidents, but to provide 
facilities for prompt and proper treatment if they should 
occur. One of the best-paying rooms in a business plant 
is the emergency room for furnishing first aid to the 
injured. It pays in a plant employing several hundred 
hands to have a thoroughly equipped emergency room 
and to have in attendance a trained nurse. If the fac- 
tory is small, a room thoroughly equipped to 
provide first aid to the injured should be pro- 
vided, and a number of men trained to give first aid. 
There should be at least two men in each department 
who have received training in giving first aid, so that 
whenever an accident occurs, aid will be near at hand. 

A great amount of knowledge is not necessary to become 
expert in giving first aid. A competent medical doctor 
Giving first should be engaged to instruct a selected corps 
aid to the to give proper assistance in case of accident, 
injured. ^ f g^ lectures on the human body, and how to 
treat hemorrhage, bleeding, fracture, and insensibility, 
what to do for sprains, burns, and scalds, and how to 
remove the sick and the injured, provide the necessary 
training and knowledge to qualify to give first aid. The 
names of the men chosen in each department and trained 
should be placed in prominent places in the department. 
Illustrated lectures on giving first aid should be given 
occasionally, and all workers should be compelled to 
attend. With slight cuts and bruises, the treatment 
given by the trained men will be the only treatment 



ACCIDENTS 275 

necessary, but in the case of a serious accident, the first 
thing to do is to send for a doctor, and in giving first 
aid, nothing should be done that should be done only by 
a doctor. 

An emergency room is an absolute essential in every 
plant. If one is not installed, no time should be lost in 
doing so. The expense of installation will Equipment 
soon be defrayed by the advantages which it of emer- 
gives. The room should be fitted -out with ^ency room, 
the latest appKances and conveniences for giving assist- 
ance in case of accidents. A bed, a movable stretcher, 
cushions, glass cabinets completely equipped with medi- 
cines, instruments, cones for etherizing purposes, band- 
ages, plasters, needles for sewing up wounds, cocaine, 
absorbent cotton, and everything to apply when aid is 
necessary, until the physician arrives. The room should 
also be furnished with heat, electric or gas light, and run- 
ning water. When the doctor arrives, no time is lost in 
preparing the patient for removal to his home or hospital, 
and the doctor is not delayed in looking for apparatus 
which might be needed in caring for the injured. 

Cases of sterilized bandages should be placed in con- 
venient places in various parts of a plant, but when- 
ever possible, the injured person should be 
treated only in the emergency room. Certain jarriiTpiant 
cases may arise when bandages will be neces- 
sary at once and before removal. In every case, extreme 
care should be taken to prevent infection, and every in- 
jured person, it matters not how slight the injury, should 
be treated whenever possible, in the em.ergency room. 
Even a slight cut or scratch should not be neglected, and 
the person should go at once and receive proper treat- 
ment. It is not unusual to find some of the best me- 
chanics absent for several days as a result of infection 
caused by slight cuts or bruises. A properly equipped 



276 ECONOMICS OF EFFICIENCY 

emergency room with an efficient man in giving first aid 
prevents such absences, and the loss of work which might 
result from men being laid ofi repays several times the 
cost of installation. 

Good medical attendance hastens healing and saves 
many a worker from losing time. Proper attention to 
Gains from bad wounds frequently saves hands, fingers, 
medical and feet. An injured person should be re- 
attendance, quij-gfj to avail himself of the facilities provided 
for treatment of injuries. Slight injuries and bruises 
which in the past were neglected, are in the progressive 
plant given careful attention. Business men are more 
and more realizing that money expended in providing 
treatment for the injured is not only the best kind of 
investment, but essential in an efficient plant. Immediate 
attention to all injuries saves much suffering, many limbs 
and lives, and much money. 

Men engaged in hazardous occupations should undergo 
careful medical examination at least once a month. If 
Health of ^^^^ ^^ Strictly followed, it prevents many 
workers in accidcnts. Workers with weak nervous sys- 
hazardous tems, run-down health, or over-fatigued lose a 
occupa ions. ^gj.|-^jj^ amount of control over their muscular 
action, and are more subject to accidents. If any of the 
foregoing causes are found, workers so impaired in health, 
and engaged in hazardous work, should not be allowed to 
continue their present work. A rest of a few days with 
a prescription usually restores the health, steadiness, 
and the former efficiency of the worker. 

No person under legal age should be employed in a 
plant. Where age limitation is not provided by statute. 
Employ- ^o person under sixteen years of age should be 
ment of allowed to Operate any power machinery, and 
chUdren. where close attention is required and hazard 
comes into the operation, eighteen years should be the 



ACCIDENTS 277 

minimum age. The employing of children and youths 
to do work which they are not physically or mentally 
able to do should be avoided, because their youth and in- 
experience endanger themselves and make them dan- 
gerous to other workers. The old saying that an old 
head cannot be found on young shoulders appHes to the 
fullest extent in the operating and the attending of 
machinery. Accuracy, precision, alertness, caution, and 
discretion, prerequisites of safety, are the acquirement of 
maturity, and cannot be relied upon to any great degree 
in childhood or youth. 

It is inconceivable that our complex industrial organi- 
zation can be conducted without some accidents and some 
fatalities. Many of our accidents are solely p^. ^^ 
the result of conditions beyond human control, state to 
and inseparable from the ordinary course of protect 
existence, but thousands upon thousands of ^°^ 
easily preventable accidents occur each year, and it is 
from these that workers should be protected. It is self- 
evident that in the field of industrial activity, the indi- 
vidual cannot protect himself, and it is the duty of the 
state to step in and protect him. Every one knows that 
the average plant is more safe than it was a decade ago. 
Many plants with their safely protected dangerous places, 
and precautions taken to protect workers from harm, are 
equal to the safest protected plants of Germany. But 
there are thousands of employers who are still indifferent 
to safety devices, and that is one of the reasons why we 
should have strict and severe laws. Statutes should be 
prepared under expert advice and should make employers 
and makers of machinery responsible for the guarding of 
dangerous parts and appliances which they use or manu- 
facture. 

The law should provide an efficient factory inspection 
department which should be a division of the labor de- 



278 ECONOMICS OF EFFICIENCY 

partment. The number of inspectors should be sufficient 

to allow thorough inspection of plants, and 
iiTspecfion. ^^^ P^y large enough to get competent men 

to perform the work. The inspectors should 
be appointed on merit and be under civil service. The 
law should insist that all existing factories and every 

new factory be registered with the factory 
ducTed?°' inspection department, and that employers 

report to the department every accident, the 
machine or appliance involved, cause, hour of the day, 
number of hours the person had been working, age, sex, 
length of time engaged in the particular work, and the 
precautions taken by the employer to protect from 
accident. 

There are two systems of dealing with employers' 
liability for injuries from accidents. The first, which 
Systems of formerly prevailed in all industrial countries, 
employers' but which now Only survivcs in certain states 
liability. Qf ^j^g United States, is the law of tort, or the 
master and servant principle of the law of negligence. 
This harsh common law rule is that no damages are pay- 
able when an accident is caused by the fault of the in- 
jured workman, or of a fellow servant, or by the unavoid- 
able risks of the employment. It is very unjust to em- 
ployees, and a travesty upon justice in this enlightened 
age of ours. All industrial countries except some of our 
states have recognized the injustice of this law, and have 
passed statute laws abolishing the old master and servant 
principle when dealing with industrial and other acci- 
dents. The principle originated in primitive times of 
industry, and is impractical and unjust in any advanced 
industrial system. It is antiquated and savors of the 
days of primitive industry. 

The second system is that of compensation, which in- 
cludes both ordinary compensation and its complex form, 



ACCIDENTS 279 

compulsory insurance. In its simplest form, it is a liabil- 
ity to pay compensation for injuries from ac- compensa- 
cidents to employees, with an added legal obli- tion in 
gation to insure its payment. This is the only accidents, 
just way of deahng with compensation for accidents, and 
it is surprising that America, one of the most enhghtened 
countries of the world, should be so backward in passing 
legislative acts enforcing this method of payment. En- 
forced payment for injuries and death due to accident 
will more than anything else induce the employer to 
adopt better safety devices. It is essential that the re- 
sponsibility of the employer be fixed, and that compensa- 
tion be certain without expensive litigation. Every 
accident incurring suffering should be fairly and promptly 
compensated for, without having to wait for delays and 
uncertainties of the courts. The certainty of respon- 
sibility fixed with the employer, and the certainty of 
compensation fixed with the employee, will make the 
employer more anxious and cautious to provide safety 
devices to protect his employees. The compensation 
provided should cover all injuries irrespective of em- 
ployer's or employee's negligence except where injury is 
self-inflicted. The compensation should be fair and just 
to both employer and employee, and the machinery of 
awarding should be simple so as to avoid unnecessary 
delays and expense. 

Workers appreciate measures taken to protect them, 
and respond by taking a better interest in their work. 
The fact that they no longer have fear of ^q^^^^ ^^ 
getting hurt and getting no compensation is a safety de- 
factor working towards greater efficiency, '"^es on 
Actual tests have shown a marked increase in "^^^ 
output on safeguarded machines due to natural speeding 
of workers who are reHeved of the fear of accident. It 
stands to reason that if a worker is compelled to divide 



28o ECONOMICS OF EFFICIENCY 

his attention between the fear of coming in contact with 
dangerous moving machinery and his work, that if he is 
reheved of the first, he will prove more efficient by giving 
his entire attention to the latter. Accidents are costly 
to the employer in the amount of money paid to the 
injured employee, and in loss of time and output. Em- 
ployers should be made to realize the importance of acci- 
dent prevention from the side of waste and increased cost 
and as soon as this is made clear to them, the great 
battle for accident prevention will be won. 

The important measures necessary to minimize acci- 
dent risks may be summarized as follows : First, the pro- 
Necessarv aiding of machinery and equipment with safe- 
measures guards, and the making it almost impossible 
for accident for a worker to be caught or injured by a piece 
prevenion. ^£ machinery or apparatus. Secondly, the 
careful instruction of workers to inculcate habits of 
caution and to know how to avoid dangerous places about 
a plant. Thirdly, the providing of effective rules, signs, 
bulletins, and illustrated lectures, which constantly re- 
mind workers of dangerous places, and the enforcing of 
strict discipHne in carrying out all rules and instructions. 
Fourthly, the provision of means for promptly caring for 
any who may be injured, through establishing emergency 
rooms and first aid to the injured service. Fifthly, the 
passing of legal statutes compelHng every employer under 
severe penalty to equip machinery and working places 
with every practical safety device it is possible to secure. 
Sixthly, the provision of adequate accident compensation 
to the injured in case of accident. You cannot find a 
single employer who has installed accident prevention 
devices, estabHshed an emergency room and first aid to 
the injured service, and made provision for the careful 
instruction of employees, who will say that money so 
expended is not well expended, and that it does not pay. 



ACCIDENTS 281 



QUESTIONS 

1. What are the different classes of accidents? 

2. What is the relation between accident prevention and 
efficiency ? 

3. Mention various causes of accidents. 

4. What remedies would you suggest to overcome ignorance 
and carelessness ? 

5. What precautions should be taken to prevent accidents in 
case of fire ? 

6. What is the relation between the use of alcoholic drinks and 
accidents ? 

7. What is the relation between fatigue and accidents ? 

8. What parts of machinery should be safeguarded? What 
precautions should be taken to prevent safeguards being removed ? 

9. What is the proper time for providing safeguards ? What 
statute law is necessary to have them provided at that time ? 

10. What precautions should be taken in oiling and cleaning 
moving machinery ? 

1 1 . What are the different methods of protecting the eyes from 
accidents ? 

12. What is the importance of an emergency room and first aid 
to the injured jars ? 

13. What precautions should be taken in the employment of 
children ? 

14. What are the requirements of efficient factory inspection ? 

15. What is a safety museum ? How should it be conducted ? 

REFERENCES 

Books 

Bureau of Labor Statistics, Washington, D. C, Bulletin No. 78, 
"Industrial Accidents"; G. L. Campbell, "Industrial Accidents 
and Their Compensation" ; C. W. Dulles, "Accidents and Emer- 
gencies"; C. Eastman, " Work- Accidents and the Law"; F. L. 
Hoffman, "Industrial Accidents in the United States," Encyclo- 
pedia of Social Reform ; Independence Inspection Bureau, "Acci- 
dent Prevention," Bulletin No. 10; "Industrial Accidents in 
Illinois," Bulletin of Illinois Bureau of Labor Statistics, 1907 ; 
"Industrial Accidents in Canada," Report of Department of Labor, 
Canada, 1907-1908 ; Law and Newell, " The Prevention of Indus- 



282 ECONOMICS OF EFFICIENCY 

trial Accidents"; D. D. Lescohier, "Industrial Accidents and 
Employers' Liability in Minnesota," Chs. I, II; "Live Articles 
on Industrial Safeguards," The Weekly Underwriter; M. O. 
Lorenz, "Industrial Accident and Employers' Liability," Report 
of Wisconsin Bureau of Labor, 1907; W. H. Tolman, "Social 
Engineering," Ch. IV; Tolman and Kendall, "Safety," Part I, 
Part II, Ch. XXIV; T. D. West, "Accidents, Their Causes and 
Remedies"; D. Van Schaak, "Safeguards"; D. Van Schaak, 
' ' Woodworking Safeguards. ' ' 



Articles 

"Accidents in the Machine Shop, Suggestions and Rules for 
Their Prevention," Machinery, Vol. 18, pp. 188-191 ; M. C. 
Albright, "When Accident Prevention Pays," Factory, Vol. 12, 
pp. 28 + ; M. C. Albright, "When Accident Prevention Prevents," 
Factory, Vol. 12, pp. 142 + ; M. W. Alexander, "The Economic 
Value of Industrial Safety," Proceedings of the First Cooperative 
Safety Congress, pp. 204-211; Atkins and Edwards, "Work- 
Accidents and the Employer," System, Vol. 20, pp. 41-45 ; G. L. 
Avery, "Making Accidents Teach Safety," Factory, Vol. 11, 
pp. 431 + ; L. D. Burlingame, "Factory Safeguards," HumanEngi- 
neering. Vol. 2, pp. 56-68; J. Calder, "The Mechanical Engineer 
and Prevention of Accidents," Machinery, Vol. 17, pp. 550-552 ; 
J. Calder, "Manufacturers and Industrial Safety," American 
Machinist, Vol. 36, pp. 273-275; John Calder, "Scientific Acci- 
dent Prevention," American Labor Legislation Review, Vol. I, 
pp. 14-24; W. H. Cameron, "Accidents to the Eye and How to 
Prevent TThem," Proceedings of the First Cooperative Safety Con- 
gress, pp. 298-300 ; R. W. Campbell, " Safety in the Iron and Steel 
Industry," Proceedings of the First Cooperative Safety Congress, 
pp. 279-291; R. W. Campbell, "How to Organize for Safety," 
Factory, Vol. 12, pp. 127-128 ; C. L. Chute, "Industrial Accidents, 
a Problem of To-day," Review of Reviews, August, 1910; W. I. 
Clark, "First Aid in Shop Injuries," American Machinist, Vol. 38, 
pp. 320-322; A. Cotter, "The Conservation of the Worker," 
Engineering Magazine, Vol. 45, pp. 489-505; J. H. Crabtree, 
"Reducing Factory Accidents in England," Factory, Vol. 11, 
pp. 113 -H ; E. T. Davis, "Safety Inspection in Illinois," American 
Labor Legislation Review, Vol. I, pp. 81-101 ; W. M. Doolittle, 
"Inspection for Safety," Human Engineering, Vol. 2, pp. 56-68; 
J. B. Douglas, "Accident Prevention," Scientific American Sup- 



ACCIDENTS 283 

plement, Vol. 76, pp. 232-234; H. W. Forster, "Accident Pre- 
vention," Stone and Webster Public Service Journal, Vol. 14, 
pp. 182-189; G. Gilmour, "Safety Engineering," Scientific Amer- 
ican Supplement, Vol. 76, pp. 36-39; C. M. Hansen, "Industrial 
Accidents," Southern Machinery, Vol. 31, pp. 82-84 ; F. R. Hutton, 
"Prevention of Industrial Accidents," Machinery, Vol. 18, pp. 600- 
603 ; D. D. Lescohier, "Accident Records in Minnesota," Ameri- 
can Labor Legislation Review, Vol. I, pp. 1 18-125; M. W. Mix, 
"Education in Accident Prevention," Proceedings of the First 
Cooperative Safety Congress, pp. 219-223 ; C. Sandburg, "Train- 
ing Workers to be Careful," System, Vol. 24, pp. 124-132 ; R. J. 
Young, "Practicable Safeguards," American Labor Legislation 
Review, Vol. I, pp. 25-44. 



CHAPTER XIII 

Fire Prevention 

The elimination of wastes of energy, time, and ma- 
terials has attracted considerable attention, and some 
Preventing progress has been made in its accomplishment, 
waste but the question of preventing waste through 

through fire fj-g prevention has received little attention, 
preven ion. ^.^^ prevention should be an important factor 
in every business, and it often has an important bearing 
upon costs and efficiency. 

During the years between 1881 and 191 2, the total 
value of property destroyed in the United States by 
fire amounted to $5,364,578,199. The fire 
from^fire losses have increased steadily year after year 
in greater proportion than the growth of the 
population. The property loss from fire in 1875 was ap- 
proximately $78,000,000; in 1885, $102,000,000; in 
1895, $142,000,000; in 1905, $165,000,000; in 1911, 
$217,000,000; in 1912, $225,000,000; and for the first 
nine months of 1913, $1,026,900 greater than for 
the first nine months in 1912. Between 1900 and 
1 910, the population of this country increased by 73 
per cent, while the fire loss increased by 134 per cent. 
Euro e and '^^^ P^^ capita loss from fire in the United 
United States greatly exceeds that of any foreign coun- 

states com- ^ry. During the year 191 1, the per capita loss 
^^^^ ■ in this country was $2.62 ; in Italy, $.31 ; in 

Germany, $.21 ; in France, $.81 ; and in England, $.53. 
During the same year New York City had 324 fires for 

284 



FIRE PREVENTION 285 

every hundred thousand people ; London, 67; and Paris, 
152. London in 1911 had 4455 fires, but its losses were 
only one fifth of those in New York, while those of 
Paris were one ninth. According to ex-Chief Croker of 
the New York Fire Department, Cincinnati, Ohio, has 
lost from fire $2092 worth of property every day for 
fifty-eight years, or a total loss of $44,685,977. During 
191 1, five cities in this country had fire losses greater than 
$15 per capita, and nine greater than $10. In addition 
to this great loss of property, 1500 persons on the aver- 
age lose their lives annually in fires, and nearly 6000 
more are injured more or less seriously. 

The great difference between the fire loss in Europe 
and in this country is the more striking in that their 
fire-fighting equipment is inferior to ours. Reasons for 
Chicago has a far more efficient fire-fighting excessive 
equipment and force than Paris, France, yet fi^'e losses, 
the fire loss in Chicago in 1907 was $1.34 per capita, and 
in Paris it was only $.47. We excel the world in fire 
fighting, yet our losses per capita are several times 
greater than any country in Europe. The only reason 
for this is that we are backward and lax in our methods 
of fire prevention. Fire prevention is simply making life 
and property safe against destruction by fire. Ex- 
Chief Croker declares that at least 50 per cent of our 
great loss in property and human life is preventable and 
is directly due to inexcusable carelessness. Much has 
been learned about fire prevention, but the knowledge 
is not used by the average person. Little is done in the 
case of fires to ascertain the cause, so that the knowledge 
obtained may be of use in preventing future fires. 
Prevention is better than cure in fire fighting. Em- 
ployers should be made to realize that it pays to take 
fire hazard into consideration, and to adopt every means 
known to modern science to guard against fires. 



286 ECONOMICS OF EFFICIENCY 

The losses due to destruction of property do not in- 
clude those to employees from being thrown out of em- 
insurance ployment, nor those arising from stoppage of 
does not business activities. Many employers seem to 
cover total think that the only thing to do to protect 
themselves against loss from fire, is to keep 
insured. Insurance may cover material loss in buildings, 
machinery, and stock, but there is in the case of fire a 
loss to a going concern more or less serious which insur- 
ance does not cover. The most disastrous losses from 
fire are frequently those coming from stoppage of pro- 
duction, disorganization of business, and delay in filUng 
orders. Insurance can never cover a loss of business. 
Fire loses the trade of customers, who must be steadily 
supplied with goods or they will go elsewhere, and fre- 
quently do not come back when the business has re- 
covered from a temporary cessation as a result of fire. 
It is good business to pay particular attention to provide 
in every way for fire prevention rather than depend upon 
remuneration by insurance for loss. 

People proclaim this an age of conservation. Much 
has been said and written about the great wastes of 
Many fires material resources, and what should be done 
are pre- to protect and conserve the gifts of nature, 
ventabie. j^ jg surprising that so httle has been done to 
prevent destruction and waste of material wealth by fire. 
The waste is enormous, and when we reaHze that a large 
part is preventable and due to carelessness, our negligence 
appears to be almost criminal. This fact alone would 
make fire prevention an important factor in efficiency. 

Losses frequently go beyond the individual plant 
Losses be- Suffering from fire loss, because often one or 
yond plant more plants depend upon goods produced by 
of fire. ^Yie plant to maintain production, or, on the 

other hand, one or more may largely depend upon goods 



FIRE PREVENTION 287 

consumed by the plant to keep them running at full 
capacity. Whatever prevents plants running to full 
capacity affects efficiency, and, at the same time, costs 
of production. Any fire of any consequence in a pro- 
ducing enterprise has a direct bearing upon production, 
and productive activities are always to a greater or lesser 
degree impeded. Fire prevention is therefore an im- 
portant factor working towards efficiency, and has an 
important bearing upon maintaining a high efficiency. 
No treatise upon efficiency is complete without a more or 
less careful study of ffie prevention. 

The problem of fire prevention may be divided into 
three parts, — preventing the origin of fires, putting out 
fires after they occur, and preventing the Divisions 
spread of fires. The first is the most im- of fire pre- 
portant to the American people. The subject ^®^*^°°- 
of fire protection and prevention does not alone concern 
the producer, but it is of the greatest concern to every 
man, woman, and child, because fire makes no discrimi- 
nation, and its devastations are felt by every one whose 
interests in one form or another come within its destruc- 
tive path. The second and third, although important 
and essential, are vastly less so than the first. Preven- 
tion is better than cure in fire fighting, but very few 
men act on this principle. 

To understand the precautions for fire prevention, it 
is necessary to know something about the phenomenon, 
fire. Fire results from the mixing of a gas 
called oxygen with things. Oxygen is color- of|^^*^^ 
less and odorless, and with another gas called 
nitrogen forms air, which is composed of one fifth of the 
former and four fifths of the latter. Scientists tell us 
that oxygen makes up more than one half of the earth, 
and that every living creature must have oxygen to live. 
Combustion is the process whereby substances or Individ- 



288 ECONOMICS OF EFFICIENCY 

ual constituents combine with oxygen and become oxi- 
^ ^ ,. dized with the liberation of heat. Decompo- 

Combustion. . . . , , , . ^ . Y 

sition IS slow combustion. Oxygen unitmg 
with carbon produces heat, and if the union is rapid and in 
large enough quantities, the combustion becomes visible 
in flame and is called fire. If the union is slow as in the 
decay of organic bodies, the heat escapes unnoticed. 
An article must be raised to a certain temperature before 
it can burn. The presence of certain substances increases 
the rapidity of oxidation and the amount of heat given 
off, and as soon as the degree of heat needed for flame is 
reached, fire results. 

Spontaneous combustion, or a substance taking fire of 
its own accord, is very mysterious to the average man. 

During every year, this is the cause of many 
comb*ustion^ fires. The phenomenon is possible without 

the assistance of any external heat, and this 
is the mystifying part of its occurrence. Spontaneous 
combustion, chemists claim, is the result of various 
processes, but the most frequent one is the chemical 
process whereby substances combine with the oxygen of 
the air. Take for example a piece of cotton. It is 
porous and is filled with a great quantity of oxygen. A 
sHght spark will cause instant bursting into flame. Add 
to the cotton saturated with oxygen, animal oils also 
loaded with oxygen, oxidation takes place at a more rapid 
rate, and as a result more heat is produced. The heat 
becomes more and more intense until the point of igni- 
tion is reached and flame bursts forth. Saturate a piece 
of cotton with animal oils, and if conditions are favor- 
able, it will burst forth into flame in a comparatively 
short time. 

Fibrous, porous, and finely divided materials favor 
spontaneous ignition because they are always saturated 
with oxygen. When these are brought in contact with 



FIRE PREVENTION 289 

oils or fats saturated with carbons and oxygen, the tend- 
ency to spontaneous combustion is greatly 
increased. The oxygen-saturated oils and conduloiTs 
fats scattered over a large surface increase the 
rapidity of oxidation and the production of heat. The 
heat becomes more and more intense until the point of 
ignition is reached, and then flame bursts forth. This is 
a most favorable condition for spontaneous combustion, 
and explains many mysterious fires in the cotton mills of 
New England. Thus is seen the danger in allowing oil- 
soaked materials to collect in out-of-the-way places, or 
in any place in a building. 

Although water is a fire destroyer, yet under certain 
conditions a small amount of it may assist in producing 
spontaneous ignition. Dampness in many Danger of 
substances increases the rapidity of oxidation dampness in 
and heat production. Damp hay or grain materials, 
stored in a barn favors oxidation, and frequently the heat 
produced is sufficient to raise the temperature to the 
point of ignition. Piles of wet excelsior, rags, straw, etc., 
produce favorable conditions for spontaneous combus- 
tion. Many a fire in home and in plant is caused in this 
way, and is due to carelessness in allowing wet rags to 
collect in closets, cupboards, cellars, etc. Spontaneous 
combustion may occur in any inflammable material 
which is subject to oxidation, and moderate moisture and 
warmth encourage it. 

The principal causes of fire are, according to experts, 
rubbish heaps, lighted matches, cigars, cigarettes, and 
exposed gas Jets. Rubbish and wastes of all 
kinds are great fire hazards in every factory, q^^^^^ ° 
store, or home. Cleanliness is therefore a first 
requisite in fire prevention, and there is nothing that is 
so dangerous as an accumulation of rubbish of any sort. 
Many are the places about a store, factory, or house that 



290 ECONOMICS OF EFFICIENCY 

collect rubbish. The best way to keep rubbish from be- 
coming a fire danger is to have no rubbish, and 
to keep places where rubbish accumulates 
entirely clean. Cuttings, wastes, and rubbish should be 
deposited in fireproof cans, and removed at 
rubbish. ^^^ ^^^ ^^ ^^^^ working day. The disastrous 
Triangle Waist Company fire, causing many 
deaths, was caused by a lighted cigarette being thrown 
into a pile of cuttings. A few dollars provide fireproof 
cans for all kinds of rubbish. The compulsory placing 
of all rubbish in such cans and their emptying at the end 
of each working day greatly decreases fire hazard. In a 
factory or store where more or less cuttings and rubbish 
find their way to the floor, and are likely to be cast into 
out-of-the-way places, the employment of a boy to keep 
the floors clean decreases the fire hazard. 

Extreme care should be taken in looking after discarded 
oily wastes of all kinds. Employees should be carefully 
instructed in the great hazards of their presence 
SiTwaVtes. ^^. a factory or store. Oily wastes, greasy rags, 
wiping rags left by painters, greasy lunch 
papers, should never be thrown aside, but extreme care 
should be taken to see that all are placed in fireproof 
cans with self-closing covers. All oxidize very rapidly, 
and spontaneous combustion is Kkely to follow. Many 
fires start from throwing greasy wastes or rags into cut- 
tings or shavings. Frequently oily or grease-soaked 
clothes are allowed to hang on wooden partitions instead 
of in fireproof, well-ventilated lockers. All 
^Mhin^ lockers, and especially where they are to con- 
tain oil-soaked, greasy clothing, should be fire- 
proof, and such clothing should never be allowed to be 
left except in the proper places. Such clothing is favor- 
able to spontaneous combustion, and the condition be- 
comes more favorable if the room were to become very 



FIRE PREVENTION 291 

humid. Many an unknown fire, if the real cause could 
be known, could be traced to the presence of oily or 
greasy wastes, rags, or clothing being carelessly cast 
aside about factory or store, and spontaneous combustion 
following. 

Extreme care should be exercised in the handling and 
the using of all liquids or materials which are highly 
inflammable. If it is necessary to keep any inflammable 
quantity on hand, it should be allowed only liquids and 
in fireproof supply rooms, and only enough "materials, 
should be taken out to last for safe periods of time. 
If artificial fight is necessary, electricity should be 
used, and under no condition should exposed flame be 
allowed. If the workers handle quantities of inflam- 
mable materials, fireproof tables should be used and no 
cuttings or rubbish of any kind should be allowed to 
collect. 

Many people make a mistake in using sawdust in 
pans to catch oil drippings, or in spittoons. Either prac- 
tice is very dangerous in any place. Sawdust Filling for 
soaked with oil may at any moment spring spittoons 
into flame, and sawdust dampened with water ^^^ °^ p^°^" 
is also very favorable to spontaneous combustion. Sand 
should be used instead of sawdust, and then no danger 
lurks in pan or spittoon. GasoHne, naphtha, or other 
volatile oils should never be stored in buildings. They 
give off highly inflammable vapors, which, if mixed with 
air in the right proportion, form explosive gases that 
very readily ignite. A person cannot be too cautious in 
the using, handfing, or storing of any highly inflammable 
substance. There is a twofold danger. One is the dan- 
ger of fire, and the other, the sudden bursting into flame 
under favorable conditions, frequently causing explosions, 
accidents, and sometimes the deatb of people in the near 
vicinity. 



292 ECONOMICS OF EFFICIENCY 

Matches carelessly thrown about are the cause of a 
great many fires. No match should be manufactured 
that will strike upon any place except the 
box. Matches thrown carelessly about are 
often carried by rats or mice to their nests. These 
rodents like to nibble at the tips, and this nibbling fre- 
quently causes ignition and fire. Ex-Chief Croker de- 
clares that more destructive fires are chargeable to the 
parlor match than to any other cause. Mr. McKeon, the 
well-known fire expert, states that there is only one safe 
rule for matches, and that is, use only safety matches, 
the kind that have to be struck on the box to be lighted. 
A match falls from the clothes of a worker to the floor, 
and is lost amidst cuttings and wastes. A person by 
chance steps upon the tip, and if it is not a safety match, 
it ignites and a disastrous fire may result. Many a 
serious fire has its beginning under similar 
in handling^ circumstances. In the modern business house 
or factory, it should not be necessary to use 
matches, but if matches are needed to light the gas, they 
should be placed in a fireproof box near where needed, 
and not be carried by workers. Pipes or matches should 
not be carried by workers while in a factory or store. 
Workers should have a place at the entrance of place 
of work to leave their pipes and matches. This should 
be enforced by rigid discipHne, and if matches are found 
on a worker in the place of work, severe punishment 
should follow. 

One of the most frequent causes of fire is smoking. 
Smoking should be prohibited in every factory or store. 
In the majority of factories and stores, in spite 
of posted prohibitions and verbal instructions 
not to smoke, smoking goes on all the time by superin- 
tendents and employees. The members of the Factory 
Investigating Commission of the State of New York in 



FIRE PREVENTION 293 

their report state that considerable smoking was found in 
nearly all of the buildings visited, and frequently the 
proprietor or superintendent would be smoking while 
showing the establishment to the inspectors of the Com- 
mission, and that smoking employees, seeing their ap- 
proach, would sometimes throw a Kghted cigarette 
underneath tables and in corners where rubbish and 
scraps might easily have started a blaze. Some even go 
so far as to claim that it is impossible to pro- 
hibit smoking. The working force should be prevent 
instructed in the great risks involved, not 
only to property but to lives, in allowing smoking in a 
place of work. Strict rules should be made, and penalties 
should be so drastic to the one who dared to break the 
rules, that smoking would soon be impossible. 

Hot ashes are responsible for many fires. Many have 
the bad habit of dumping ashes on the floor and allow- 
ing them to accumulate for several days before 
removing. The ash pile in the meantime be- 
comes the common dumping ground for wastes of dif- 
ferent kinds. Ashes should not be allowed to be piled 
on the floor, or kept in barrels or wooden 
boxes, but should always be kept in closed carrfor. 
metal cans. They should not be allowed to 
be kept in buildings even over night, but should be 
removed from the premises as soon as collected. 

Many fires occur annually from not properly pro- 
tected gas jets. All jets in factories and stores should be 
inclosed by globes, wire cages, or otherwise ^ . 
properly protected. Gas jets should be rigid, 
or so arranged that they cannot swing against woodwork 
or other combustible material. If the distance be- 
tween gas jets and a combustible ceihng or 
combustible material is less than three feet, 
there should be provided a heat deflector, preferably in 



294 ECONOMICS OF EFFICIENCY 

the form of a metal bell, which should be suspended over 
the jet at least four inches from the ceiling or material 
exposed. Even with a heat deflector, the gas jet should 
not be less than eighteen inches from inflammable ma- 
terial. All combustible materials on walls behind gas 
jets, and within one foot, should be protected preferably 
by a sheet of asbestos-board and tin with an air space. 
In no case, even where a shield is provided, should a gas 
jet be less than eight inches from combustible material 
on walls. Rubber tube connections should be avoided 
wherever possible, and if it must be used, the gas should 
be turned on and off where the tube joins the gas pipe, 
and not at the burner. The use of mantles and in- 
closed burners is safer and preferable to ordinary tips. 
If the smell of gas is detected, open doors and windows, 
and do not look for a gas leak with matches or exposed 
lights. 

If the oil lamp is used, many precautions should be 
taken. Care should be taken that the lamp is always 

safe from being knocked over. Lamps should 

always be filled during daylight, and never 
while burning, and those burning gasoline or naphtha 
should not be allowed in factory, store, or home. The 
best grade of kerosene should be used, and it never 
should be used to start fires. 

Faulty insulation and imperfect wiring cause many 
fires. When electric lighting is installed in factory, store, 

or house, the wiring should be such as com- 
S'wMni""^ pHes with the regulations of the National 

Board of Fire Underwriters. Wiring is a true 
source of danger if not properly installed, but it is per- 
fectly safe if properly done. Careful inspection should 
regularly be made, and deterioration should not be 
allowed to go too far before renewing. Incandescent 
electric light bulbs should not rest on combustible ma- 



FIRE PREVENTION 295 

terials, and the latter should not hang or be draped over 
the former. 

The heating of factory, store, or home is either by gas, 
electricity, hot water, steam, hot air, or stove. In each 
case, precautions should be taken, or fire 
hazards will exist. The gas stove is used J!!?"'^^"* 

I r 1 • • 1 heating. 

more extensively lor heatmg purposes m the 

house than in factory or store. Gas stoves, if used, should 

have legs or stands to keep the burners above the base 

of the stove, but if less than a foot from combustible 

material, a heat shield should be used. Iron piping 

should be used for all connections, as rubber 

tubing wastes gas, catches fire easily, and, by 

leaking, causes explosions. The same precautions should 

be taken when wiring for electric heating as for fighting. 

The electric heater should not be nearer than 

a foot to woodwork or combustible material, ^eater*^ 

If nearer, a heat shield should be used, and in 

no case should a space of less than eight inches exist. 

Pipes for carrying hot water, steam, or hot air should 
be properly protected when installed. Those running 
underneath floors should be properly covered gtgam hot 
with non-conducting materials. Many fires water/and 
are traceable to contact of steam pipes with ^°* ^^^ 
floors, ceilings, and partitions. If pipes run ®^"^^- 
in concealed parts, there should be proper ventilation, 
and in every case it should be possible to inspect, and 
inspection should be careful and frequent. Small pipes 
for feeding radiators should have a clear space of two 
inches from wood or combustible materials, and one inch 
if a shield is used. When pipes pass through ceifings, or 
floors, there should be metal sleeves or tubes at least an 
inch larger than the pipe. A tight collar should be next 
the floor or ceifing to prevent dust or rubbish from get- 
ting into the opening. 



296 ECONOMICS OF EFFICIENCY 

Many owners of small factories and stores still use the 
wood or the coal stove for heating purposes. All stoves 
should be placed on legs or stands to keep 
coaT stoves them from the floor. Underneath every stove, 
there should be a galvanized iron, zinc, or 
sheet iron covering, and this should extend beyond the 
front to catch any coals that might by accident drop. 
At least three feet of clear space should exist around 
stoves, but if not this distance, metal shields should be 
used. These shields should be at least one inch from 
combustible material, so as to allow an air space for 
heat to circulate. Wood in contact with hot-air or steam 
pipes will char, and then take fire rapidly, and if condi- 
tions are favorable, may ignite spontaneously. Wood 
within two feet of such pipes should be protected, if pos- 
sible, by heat shields with air space. A few inexpensive 
precautions remove many fire hazards, and if all would 
see that such were used, there would be several thou- 
sand less fires every year. 

Stovepipes should run directly from the stove to the 
chimney, and should not go through floors or partitions. 
In case they do, extreme precaution should be 
taken to protect by heat shield and air space. 
All chimneys should be inspected regularly and kept 
clean. Stovepipes should be spark-tight, and sections 
should fit tightly into each other by at least three inches. 
Every pipe should enter the chimney horizontally, but 
should not enter so far as to choke the flue. It is advis- 
able to have one or more turns in a pipe before entering a 
chimney, because bends and turns are needed to kill sparks. 
Many of our factory and store buildings have open 
spaces under floors, behind walls, and over the 
op«f spaces ceiKngs. These concealed spaces form excel- 
lent hiding places for rats and mice to roam, 
and build their nests. Holes in floors allow cuttings 



FIRE PREVENTION 297 

and wastes to collect, and holes in ceilings and walls per- 
mit the collecting of dust. All assist in making condi- 
tions most favorable for starting fires by spontaneous 
combustion. Special care should be taken that no hollow 
construction exists, and every precaution should be taken 
to keep floors, walls, and ceiHngs absolutely tight. Regu- 
lar inspection should be made for nests of rats and mice, 
and special care should be taken to prevent the collecting 
of dust, cuttings, and wastes in concealed places. 

In many factory and store buildings^ a serious fire 
hazard exists in shafts and openings through floors and 
ceiHngs, as stairways, elevators, belt holes, pipe 
ducts, ventilating shafts, etc. These openings openings 
make it easy for the rapid spreading of fire 
through a building, and soon getting beyond the control 
of firemen. Openings should all be closed so as to pre- 
vent their acting as fire carriers. A sheathed wall is 
dangerous, as it allows fire to spread rapidly from cellar 
to roof. Special attention should be paid to floors, walls, 
and ceilings to keep them absolutely tight, and if such 
precautions are taken, fire hazard will be greatly reduced. 

Means should be taken to keep a factory as 
free from dust as possible. This is imperative, not 
only as a protective measure to the health 
of employees, but is in many cases necessary ^^^^^^ '° 
as a prevention of fire. Frequently in many 
factories, the dust is of such a character that a 
quantity of it suspended in the air in the right proportion 
forms an explosive mixture. This is true of the dust 
found in grain elevators, flour mills, planing mills, etc, 
A slight spark caused by a nail or stone getting into the 
grinder will ignite flour dust, and cause a disastrous ex- 
plosion. Frequently small sparks of electricity will be 
given off of belts, and just sufficient to cause if conditions 
are favorable the ignition and explosion of dust-laden 



298 ECONOMICS OF EFFICIENCY 

air. Moisture in the air lays dust and materially 
lessens static discharges from belts, and may be admitted 
by allowing jets of steam to escape where most of the 
dust is found. Just sufficient steam should be allowed 
to moisten the atmosphere, and not enough to cause 
damage to whatever stock may be in the room. As re- 
gards belts, Professor M. M. Richter states that coating 
them once a week with acid-free glycerin attracts mois- 
ture, and not only gives security against static discharges, 
but increases the hfe of the leather. 

The second part of the problem of fire prevention is 
controlHng and putting out a fire after it starts. Effi- 
cient control of fire requires prompt discovery, 
a^e° °^ prompt appHcation of extinguishing measures, 
and the provision of retarding or confining 
measures. For detecting fires, various automatic devices 
are in use, as well as the old method of employing watch- 
men or fire patrols. Automatic fire alarms or detectors 
are operated by the heat of the fire, and ring alarms or 
give signals to the fire department, or to per- 
fire°^rins ^^^^ ^^ charge of a building. The automatic 
fire alarms, or thermostats as they are called, 
are of various types, and if well made and properly in- 
stalled, are of great value in fire detection. The ma- 
jority are alike, in that they send in an alarm when the 
ternperature in the place which they protect rises sud- 
denly beyond a certain degree of heat, usually a hundred 
and fifty to a hundred and fifty-five degrees Fahrenheit. 
Thermostats are either electrical or pneumatic 
thermostats ^^ operation. The great majority are elec- 
trical, and depend for their operation on the 
melting or expansion of parts of the mechanism as a result 
of a rapid rise in temperature to the point of safety. 
The melting or expansion causes the completion of an 
electrical circuit, and the electrical current starts in 



FIRE PREVENTION 299 

operation the transmitting mechanism which sends in 
the alarm. The pneumatic thermostat de- „ 

JrI1611TI19.LlC 

pends upon the melting of a fusible strip of 
metal used as a connection by which a piston is moved 
and air compressed, and the resulting pressure starts 
in operation the transmitting apparatus which sends in 
the alarm. Thermostats of the best variety give an 
alarm at a sudden rise of temperature only and this 
avoids alarms when the area protected gradu- installation 
ally becomes hot by natural means, as by ofthermo- 
allowing steam heat to remain on, or through ^*^*^- 
defects of the heating system. Thermostats are placed 
in ceihngs at from eight to twelve feet apart, and cover 
the entire floor space. Care should be taken in their 
installation in order to provide the proper wiring. A 
single circuit should not carry more than twenty-five 
instruments. Circuits should be provided with auto- 
matic means of giving notice when they are out of order, 
but this precaution should not prevent careful and con- 
stant inspection. The wires of the system should be 
under battery test ; if not, a testing apparatus should be 
in some part of the building where an employee is con- 
stantly on duty. 

A recent development of the thermostat idea is the 
use of heated air as an active mechanism. Air when 
heated expands and produces pressure which Automatic 
is the working principle of this new automatic alarm 
alarm. The device is simple, and consists of operated by 
copper tubing of small size which is fastened 
upon the ceiHng of the room to be protected. At the 
end of the tube is a box containing a detector and a 
transmitter. The tube is filled with air of the same 
temperature as the room, and when the latter becomes 
hot, that in the tube undergoes the same change. The 
detector is a device whose purpose is to make an elec- 



300 ECONOMICS OF EFFICIENCY 

trical contact, and by this means operate the transmitter. 
It has a silver-foil diaphragm. When the air is heated, 
the extra pressure pushes the diaphragm outward, and 
makes an electrical contact, which starts the transmitter, 
and the alarm is sent in. The contact is made only 
when the silver-foil diaphragm is pushed outward by a 
certain pressure which comes from a certain amount of 
heat in the tube. 

Experts by experimentation discovered that a real 
fire causes the air in the tubing to increase in tempera- 
ture at the rate of about four degrees per 
vaive^ minute. The detector is set to operate by a 

rise of temperature of four degrees or more, 
but if the rise is less than four degrees, no alarm is sent 
in, because a safety valve or vent prevents it. The 
safety valve consists of a closed tube with a very small 
opening. This allows the air to escape as long as it is 
heated less than four degrees per minute, but if the tem- 
perature increases at the rate of four degrees or more, the 
opening cannot let the air escape fast enough, so the 
expansion causes sufficient pressure on the diaphragm to 
make an electrical contact, and to start the transmitter in 
sending the alarm. It makes no difference whether the 
temperature in the place protected is high or low, because 
a rapid rise is what operates the device. The alarm will 
work as well in a cold-storage vault as in a room with a 
mean temperature of a hundred and fifty degrees. 

A common alarm is the manual alarm box, which is a 
simple alarm operated by hand. A chief prerequisite is 
accessibihty, so that no time will be lost in 
^ara box gi'^i^S the alarm. The number of alarm boxes 
in a building depends upon its area. They 
should be placed so that in any case no great distance 
should be traveled to reach one. Manual alarms re- 
quire testing, which should be thorough, and as frequent 



FIRE PREVENTION 301 

as once a month. The boxes should be painted bright 
red, have directions posted in one or more languages, if 
need arises for it, and be so designed that they cannot be 
used for any other purpose. 

Another protection against fire is the employment of 
watchmen or fire patrols who regularly patrol a building 
during nights and hoHdays, and visit every 
part at least once each hour. The custom is 
to have watchmen in addition to automatic alarms. For 
fire detection during nights, hoHdays, and Sundays, 
watchmen are necessary in any factory or building of 
value. As a guarantee that watchmen properly perform 
their duties, a system of control has been estabhshed for 
them. The movements of the watchman are recorded 
by means of time detectors, and they are absolutely neces- 
sary to make a patrol system effective. A patrol should 
be made every hour from the end of the day's business 
until just before business is again resumed. Special care 
should be taken in the choice of watchmen. They should 
not only be men of high character and strictly temperate 
in every way, but if possible, should be men of some 
experience in fire matters. Veteran firemen or men who 
have served as volunteer firemen are best suited, and a 
few dollars a month should not be considered if a properly 
quahfied watchman can be obtained. 

The general types of instruments for recording the 
movements of watchmen are the portable watch clock, 
the stationary watch clock, and the central 
office system. The portable watch clock in ^^tch clock 
appearance is a small alarm clock, and as the 
name signifies, is carried by the watchman on his rounds. 
The record is made on a paper dial by inserting a key, 
the turning of which punctures or embosses the dial. 
The dial should be large enough to make it possible to 
determine with accuracy the time at which the record 



302 ECONOMICS OF EFFICIENCY 

is made. A building is divided into a number of 
stations, and each station has a distinctive key. The 
paper dial should show the exact hour and minute, and 
the number of times that each key is used. 

The stationary watch clock system may be sub- 
divided into two general classes. The first is one sta- 
tionary clock in a central location, and the 
watch^tock. second consists of many stationary clocks 
located in different parts of a building. A 
stationary clock of the first class is in appearance like an 
ordinary office clock. It resembles the portable clock 
in that it uses a paper record, but it is different in that 
it is electrically operated. The marking mechanism is a 
needle point held back of the paper record. The point 
is mounted on one end of a pivoted lever bar at the 
other end of which is an electric magnet. When elec- 
tricity flows through the coil of wire around the magnet, 
the lever bar is attracted, and the movement forces the 
point into the paper record. Each station has a sepa- 
rate marking mechanism connected by wires to a small 
generator at the station. The generator is a device for 
producing a current, and is operated by turning a handle 
carried by the watchman. When a watchman visits a 
station, he inserts his handle into the mechanism and 
turns it. This starts the electrical current which marks 
the time on the dial at the office. If there are several 
watchmen, each having a separate district, each will have 
a separate clock, or a separate dial on a large clock face. 
The second form consists of a separate clock in differ- 
ent stations of the building. The records of rounds are 
Separate Ordinarily made by puncturing the dial, which 
clocks in is usually made of paper, but sometimes the 
different records are made by embossing. Whatever 
method is used, the marks should be clear and 
distinct. The puncture or embossing is made by insert- 



FIRE PREVENTION 303 

ing and turning a key. The opening of the door should 
make by some mechanical means a distinct record on the 
dial. A precaution should be taken to have the keys 
of watch clocks of rather an elaborate pattern, so that 
dupHcates cannot be easily made, and that a key will 
fit only the clock for which it is intended. The station- 
ary clock of the first type is more commonly used than 
the second. 

The central office system is in use in many large plants. 
The territory to be covered by watchmen is divided into 
a number of stations, and each is equipped central 
with a special kind of signal box, which is office 
usually worked by inserting a key and ^y^t®™- 
winding a spring. The spring, on being released, 
starts in motion a tooth wheel which makes an elec- 
trical contact with a registering device in the central 
office. The registering device prints upon a paper tape 
a mark for each tooth of the wheel in the station box, 
and the teeth are spaced to correspond to a given number 
which is a station signal. Each box has a separate 
signal, and the operator at the central office records the 
time it is received. In a large factory or store, the cen- 
tral office system may be conducted by the factory or 
store itself, but the usual practice is to have it conducted 
by a special company, who make a specialty of fire detec- 
tion. Messengers are kept in attendance. When signals 
do not come at allotted times, they are dispatched to 
ascertain the cause. 

The third problem of fire prevention is the applying of 
fire extinguishers as soon as possible after a fire starts. 
The most efficient means of rapidly checking 
the spread of fire, and putting it out in its ^^rJ^^erg. 
incipiency, is the automatic sprinkler system. 
Chief John Kenlon of the New York Fire Department 
declares that the sprinkler is the best single means of 



304 ECONOMICS OF EFFICIENCY 

preventing fires and saving life known to scientific fire 
fighters. The automatic sprinkler, when properly ar- 
ranged and systematically inspected, has been described 
as the greatest economic system of the age. One of the 
best known experts in fire prevention has declared that 
fully 90 per cent of the fires in buildings equipped with 
automatic sprinklers have been effectively held in check 
or extinguished in incipiency. To obtain the greatest 
efficiency, automatic sprinklers should be properly in- 
stalled, carefully inspected, and maintained at the 
highest point of efficiency. 

Automatic sprinklers are of many varieties and vary 
in size, power, and cost. They are devices for shower- 
ing water on fires at their starting without specific 
Mechanism human agency. The sprinkler is the mecha- 
of nism which discharges water upon the fire, 

sprinklers, jj- j^olds the water back and turns it on 
when needed, and in this way resembles an ordinary 
water faucet. The faucet is turned on by hand, while 
the sprinkler is started by heat, which makes it auto- 
matic. Sprinklers are square or circular plates having 
one or more openings, and are set in pipes in the ceilings 
of rooms at greater or lesser intervals. The pipes are 
connected to large vertical pipes, which are supply pipes, 
and these connect with the source of water supply. 

The sprinkler head is sealed under normal conditions, 
so that the water in the pipe cannot escape. When the 
temperature in the vicinity rises to a certain 
sprfnkieT" intensity, say a hundred and fifty-five or a 
hundred and sixty degrees Fahrenheit, the 
seal is automatically broken. The seal is made of a 
fusible solder which melts at a fixed temperature. By 
making the seal of solders that melt at different degrees 
of heat, sprinklers may be made to begin to operate at 
any temperature, and many are made for high temper- 



FIRE PREVENTION 305 

atures, as two hundred and eighty-five or three hundred 
and sixty degrees Fahrenheit. When the seal is broken, 
the water bursts forth. The head is usually provided 
with a splash plate against which the water is forced, 
and this causes it to fall like a shower. A single head 
drenches Hke rain an area of from eighty to a hundred 
square feet. Sprinkler heads are so dis- 
tributed in the ceiling of a room that the o/heads^"'^ 
water from them covers the entire floor with- 
out overlapping. 

The automatic sprinkler may be the means of giving 
an alarm, and frequently it is the first alarm. Attached 
to the main supply pipe is an alarm valve 
which is a device so constructed, that the flow aiari^^^*^ 
of water through it causes the operation of an 
electric or a mechanical gong. The gong may be either 
in a central place in a building or in an outside ofiice. 
The use of both kinds of gongs gives the best protec- 
tion. Many instances are known where the first inti- 
mation of fire to a watchman has come from an alarm 
operated with the automatic sprinkler system. The 
modest little sprinkler, almost out of sight in the ceiling, 
is a great fire fighter in putting out fires at their start 
as well as a valuable alarm giver. 

The automatic sprinkler is an outgrowth of the per- 
forated pipe sprinkler. This is a system of perforated 
pipes placed close to the ceilings of the rooms Perforated 
to be protected. The perforated pipes are pipe 
connected with supply pipes leading to the sprinklers, 
source of water supply. When fire breaks out, the water 
is turned into the supply pipes, then to the perforated 
pipes, and by them it is discharged over the area served. 
The system is frequently used in cellars and out-of-the- 
way places, where it is difficult for firemen to reach with 
hose and nozzle. Most cities have strict regulations 



3o6 ECONOMICS OF EFFICIENCY 

regarding the installation of perforated pipes, and 
specifications and standards to be rigidly followed with 
the pipes used. 

A pail of water is the fire extinguisher which is most 
commonly used. The fire pail is cheap, may be placed 
anywhere, and its use is understood by every 
one. The chief objection is that it is used for 
other purposes, and is not always filled with water. As 
a result, when needed, it is often empty, and often not 
found in its place. Fire pails should be placed in con- 
spicuous and convenient places, always kept filled with 
water, and never allowed to be used for other purposes. 
In stores, offices, and other places, people object to the 
inartistic appearance of rows of pails, painted bright 
red, and labeled "Fire." Bucket tanks are used in 
their place. These are metal or wooden tanks or barrels 
filled with water, in which are placed several 
pails. If fire breaks out, the cover is re- 
moved, and the water is dipped out, to put out the fire. 
Care should be exercised to see that the tanks are always 
filled with clean water, and that pails are ever ready for 
use. Where oil, paints, or inflammable liquids are used, 
it is well to have part of the pails filled with clean dry 
sand, because with burning oil, sand is more effective 
than water. 

Many devices have been invented for providing ready 
means for use in case of fire in addition to the ordinary 
Chemical ^^^ P^i^- The most successful and the most 
extin- widely used is the chemical extinguisher, 

guisher. which is a small tank having attached at one 
end a small hose for the purpose of directing a stream 
of water. The tank contains about two and a half gal- 
lons of water in which is placed some bicarbonate of soda, 
and at the top is suspended a small bottle of sulphuric 
acid with a loose stopper. When the tank is turned 



FIRE PREVENTION 307 

upside down, the sulphuric acid flows out, mixes with 
the soda solution, and gives forth carbonic acid gas. 
The water carries the carbonic acid gas, which greatly 
assists in putting out flames. The gas performs another 
function. In keeping the water in the tank 
under certain pressure, it makes it possible to operate. 
throw the stream some little distance. Pails 
of water and chemical fire extinguishers are fire fighters 
which may be used by every one, and their presence in 
sufficient and adequate numbers should be found in 
every factory, store, and office. Chemical extinguishers 
should be regularly inspected, and recharged at certain 
periods of time. There are many varieties of small fire 
extinguishers, as hand grenades, which are glass bottles 
of chemical solutions to be thrown on the fire, dry 
powder extinguishers, or tubes filled with bicarbonate of 
soda which give off carbon dioxide when heated, etc. 

A protective measure which is more important in a 
large building than in a small, is the standpipe with 
hose attachments. A fire standpipe is a line of 
pipe to supply water to hose connections at 
various places along the pipe. In a large building, a 
number of these pipes is necessary and there should 
be hose connections on every floor. The hose used should 
be of standard size and quality, and should be kept 
folded on racks rather than rolled. The water supply 
may come from a tank on the roof or from the city 
system. A tank is always advisable on a high building, 
but is only temporary until the city fire de- 
partment is able to make connections, and 
force water up with fire pumps. A standpipe is supposed 
to be only necessary for high buildings, as it does away 
with long stretches of hose, but it is equally important 
in buildings of three stories. Whenever standpipes are 
installed, care should be taken to get adequate water 



3o8 ECONOMICS OF EFFICIENCY 

supply, and that with sufficient force. The hose and all 
apparatus used should be regularly inspected and tested. 
Axes and hooks should be placed in accessible and 
convenient places on each floor of a building. 

A third problem is confining a fire or preventing its 
spread. This has to do with confining a fire to as small 
a space as possible, and to preventing a building from 

taking fire from the outside. Buildings are of 
bSidings. two kinds, fireproof and non fireproof. The 

fireproof building is one with walls of brick, 
stone, cement, or metal; with floors of cement, stone, 
or brick ; with partitions, ceilings, windows, trim, 
and doors, of metal or fire-resisting material; and 
with stairways of stone or metal and inclosed by 
fireproof walls. These buildings should be suppHed 
with automatic sprinklers, standpipes, and chemical 
extinguishers. If a fire occurs, it is confined to the 
floor or room where it starts. If all buildings were so 
constructed, our fire loss would dwindle to a small frac- 
tion of what it is to-day. In New York City, and in 
other places, many buildings are called fireproof which 
are not. They usually have open stairways, wooden 
partitions, doors, floors, windows, and trim, and here is 
where the fire hazard Hes. In Europe, practically all 
city buildings are constructed of fireproof materials. 
The Consul-general of Vienna reports that there is no 
case known in that city where fire has extended beyond 
the building in which it originated, and cases are hardly 
ever known where fire extended beyond the floor where 
it started. 

A fourth problem has to do with the protection of 

life in case of fire. The ordinary outside fire 
onir^^^" escape is the usual means provided for escape 

from fire. Fire escapes should at all times be 
kept clear of articles and rubbish. Exits to them should 



FIRE PREVENTION 309 

be clearly marked, and passageways should at all times 
be kept clear. Windows to fire escapes should be large 
enough to allow a grown person to pass quickly and 
easily through, and should be made of wire glass. All 
doors leading to fire escapes or other means „ 
of exit should open outward and be fireproof. 
If sliding doors are used, no obstruction should be 
placed in the way of their sliding freely backward. Doors 
and windows should be cut down to the level of the floor 
and the platform of the fire escape should be also on this 
level. Outside fire escapes are usually inadequate in 
case of fire. Employees are not accustomed to their 
use, and usually do not use them except as a last resort. 
Fire escapes allow only a slow means of exit, because not 
being accustomed to climbing down, a person moves very 
slowly. Fire frequently breaks through below the es- 
cape and prevents flight by this method. Fire experts 
throughout the country declare that the fire escape is 
unsatisfactory, should in future be discarded, and other 
methods adopted. 

Thousands of buildings throughout the land have 
wooden stairways open or inclosed with wooden parti- 
tions. When fire starts, it rushes with great rapidity 
from floor to floor through these stairways, Dangers in 
and makes flight by means of stairs impos- wooden 
sible. The open wooden stairway is a menace staircases, 
to property and to life. The law should insist that all 
wooden stairways be removed, and be replaced by fire- 
proof stairs inclosed with fire-resisting materials. A 
reasonable safety will then be afforded employees who 
will be able to descend the stairs in safety. Stairway 
exits should be distinctly marked, and the passageways 
thereto should always be clear and unobstructed. 

The best fire escape for any factory or building is the 
so-called Philadelphia fire tower. It consists of a flight 



3IO ECONOMICS OF EFFICIENCY 

of stairs leading to the ground, and inclosed in a tower 
of brick or fireproof material. The tower is 
fire^t(fw«-^^ separate and apart from the rest of the build- 
ing. Its construction should be such that it is 
absolutely fire- and smokeproof. From each floor there 
is a fireproof balcony leading to the tower. The 
tower is the safest and best of all fire escapes. An- 
other type of fire escape is the outside stairs 
Outside which are regular fireproof stairs placed on the 
stairs. outside of a building. They are reached by 

doors passing out from the various floors, and 
these should slide or open outward and be fireproof. 

The fire wall is gaining favor as a protection, and a 

safeguard to life. The simplest form is to have a fire- 

proof wall divide a building from top to 

bottom into two parts. If a building covers 

a large area, more than one wall should be built. The 

doors on every floor should be fireproof and should 

never be locked. Fireproof walls should be compulsory 

in every building over three stories, whether fireproof 

or not. The wall, besides being a safeguard to the lives 

of employees, is also of great value in confining a fire. 

An important question in safeguarding life is that of 

overcrowding. The number of persons which should 

be allowed on a floor depends upon the exits 

Overcrow - ^^^ ^-^q f^YQ protection, and whether the 

building is non-fire- or fireproof. The law 

should be severe in compelling a sufficient number of 

exits, and should limit very materially the number of 

people allowed if fire precautions are not used. The 

number of persons which should be allowed on a floor 

of any building, where more than fifty persons are em- 

^ ,. ployed, should be ascertained by the fire 

commissioner of the town or city where the 

building is located. The number should be posted in 



FIRE PREVENTION 311 

a conspicuous place on every floor of the building, 
and if the number is exceeded, the proprietor should 
be notified, and if the number is not reduced, he should 
be severely punished. 

In factory and office buildings, and in stores, where 
more than twenty-five persons are regularly employed 
above the second story, the use of the fire drill 
is very necessary. Employees should be 
shown where the stairways and exits are, told which to 
use, and the means of reaching them. A fire drill is 
extremely useful in preventing panic at time of fire. 
The importance of keeping all passageways to exits open 
and clear should be strongly emphasized. A 
fire drill should be held at least once every 
month under the supervision of one of the members of 
the local fire department. It serves to constantly bring 
to the mind of the employer and employee the constant pos- 
sibility of fire, and the necessity of using every possible 
precaution to prevent it. The employees in a building 
of more than two stories in height should frequently 
have their attention drawn to the exits. Illustrated 
lectures should be occasionally given upon precautions 
to prevent fire, and what should be done in case of fire. 

Fire protection is a science in itself. It pays every 
employer to have his premises regularly inspected by a 
competent fire protection engineer. Every p-jj-e pro- 
precaution should be taken to prevent a case tection a 
of fire, and every possible means adopted to s"®°<^®- 
put a fire out as soon as possible after starting, to confine 
its spread, and to protect occupants of the building. 
Employers and employees alike play an important 
role in reducing our great loss from fire. If we could 
lower our loss to what it is in Germany or Austria, what 
a great saving would result in material resources and 
what a benefit to worker and to employer alike. 



312 ECONOMICS OF EFFICIENCY 

QUESTIONS 

1. Compare fire losses in Europe with those of the United 
States. 

2. What are the functions of fire prevention? 

3. Give the chemistry of fire. 

4. What is spontaneous combustion? Mention favorable 
conditions. 

5. Give the causes of fire. 

6. What precautions should be taken in electric wiring? 

7. What are the dangers from open spaces ? How may they 
be eliminated ? 

8. What is the automatic fire alarm? How should it be in- 
stalled ? 

9. Give a good fire patrol system. 

10. What is the automatic sprinkler? What precautions 
should be taken in installation ? 

11. Mention various kinds of automatic alarms. 

12. What is the chemical fire extinguisher? What precautions 
should be taken to keep it in good condition ? 

13. What precautions should be taken to protect life in case of 
fire? 

14. What is the importance of the fire drill ? How may the fire 
drill be installed? 

15. What precautions should be taken in the case of fire escapes ? 



REFERENCES 

Books 

J. S. Braidwood, "Fire, Its Prevention and Extinguishers"; 
E. F. Croker, "Fire Prevention" ; Crosby and Fiske, "Hand Book 
of Fire Protection" ; J. C. Duncan, "The Principles of Industrial 
Management," Ch. X ; J. K. Freitag, " Fire Prevention and Fire 
Protection" ; H. Ingle, "The Chemistry of Fire and Fire Preven- 
tion," Insurance Engineering Hand Book of Public Safety, Newark, 
N. J., 191 1 ; P. J. McKeon, "Fire Prevention" ; New York State 
Factory Investigating Commission, "The Fire Problem," Report, 
1913, Vol. I, pp. 53-89; H. F. J. Porter, "The Fire Hazard," 
New York State Factory Investigating Commission, Preliminary 
Report, X912, Vol. I, pp. 151-199; The Spectator Company, 
"Fire Prevention and Protection"; G. V. Steeb, "Agents' and 



FIRE PREVENTION 313 

Inspectors' Pocket Book of Fire Protection"; E. Von Schwartz, 
"Fire and Explosion Risks"; J. P. Whiskeman, "The Fire Haz- 
ard," New York State Factory Investigating Commission, Report, 
1913, Vol. 2, pp. 613-666. 

Articles 

J. M. Bessey, "Fire Waste," Independent, Vol. 74, pp. 626-631 ; 
B. Blackburn, "Elevated Tanks for Fire Protective Service," 
Engineering Magazine, Vol. 44, pp. 385-392; "Chemical Fire 
Extinguishers," Scientific American Supplement, Vol. 77, p. 139; 
E. F. Croker, "Practical Fire Prevention," Engineering Magazine, 
Vol. 43, pp. 373-377; "Electrical Fire Protection," Scientific 
American, Vol. 109, p. 215 + ; P. Evans, "Fire Waste," Survey, 
Vol. 26, pp. 496-507; "Fire Protection for Factory Workers," 
Industrial Engineering, Vol. 13, pp. 411-417; E. V. French, 
" Control of Fires through Scientific Methods," Scientific American 
Supplement, Vol. 72, pp. 34-35; J.Johnson, " Recent Progress in 
Fire Prevention and Fire Fighting in New York City," American 
City, Vol. 9, pp. 203-208 ; S. G. Koon, " Training the Factory 
Force to Fight Fire," Factory, Vol. 9, pp. 520 + ; P. J- McKeon, 
"Standards of Safety from Fire in Factory Buildings," Human 
Engineering, Vol. I, pp. 125-133 ; H. F. J. Porter, "Taking Fewer 
Chances with Fire," Factory, Vol. 12, pp. 409 + ; H. F. J. Porter, 
''" Factory Fire Drills,"Cassier, Vol. 40,pp. 177-186; H.F.J. Porter, 
"Life Hazard in Crowded Buildings due to Inadequate Exits," 
Scientific American Supplement, Vol. 76, pp. 2-3 ; "Safeguarding 
the Factory against Fire," Industrial Engineering, Vol. 14, pp. 15- 
24 ; F. P. Walther, "Automatic Sprinkler Protection for Industrial 
Plants," Engineering Magazine, Vol. 44, pp. 79-90 ; F. P. Walther, 
"Fire Fighting Appliances for Industrial Plants," Engineering 
Magazine, Vol. 44, pp. 233-241; F. P. Walther, "Principles of 
Fire Resisting Construction for Industrial Plants," Engineering 
Magazine, Vol. 44, pp. 720-736; I. H. Woolson, "Elements of 
Factory Fire Protection," Engineering Magazine, Vol. 43, pp. 719- 
720. 



CHAPTER XIV 

Wages 

The problem of wages has been a perplexing one, and 
the cause of dissension and strife since man began to 
Importance work for man. From earliest times, the 
of the wage chief cause of dispute between employer and 
question. employee has been what should be paid for 
labor. With the introduction of the factory system, and 
the investment of large sums of capital in the industrial 
field, the wage question caused the opening of a wide 
chasm between employers and employees. Due to the 
struggle over wages, trade unions came into existence 
to protect laborers, and employers' associations were 
formed for the purpose of carrying on the struggle against 
labor. The question of what constitutes a fair wage 
has led to countless bloody conflicts between employers 
and employees, causing a loss of millions of dollars, as 
well as much suffering on the part of wage earners and 
those dependent upon them. During the past year, 
the struggle between employers and employees over the 
wage question has been waged more or less bitterly in 
nearly every industrial country. When one sees the 
bitterness in many of the recent struggles, it almost 
makes one believe that the chasm between the two 
great factors of our industrial system is as wide as it 
was half a century ago. 

The question arises, Has any progress been made in 
making employers and employees realize that their in- 
terests are not antagonistic but one ? Many answer with- 

314 



WAGES 315 

out hesitation in the negative. I am more optimistic, 
and firmly believe that during the last quarter of a cen- 
tury, a great advancement has been made in interests of 
making employers better understand em- employers 
ployees and vice versa. Every day employers ^^'^ ^^- 
are realizing that employees are human beings ^ °^^^^ °°®' 
and should be treated as such, and employees are also 
realizing that employers are necessities in our industrial 
system, and should have their rights respected and 
protected. This reahzation is gradually bearing fruit, 
and impressing upon both parties the fact that their 
interests are not antagonistic, but one, and that both 
should put their shoulders to the great industrial wheel 
in order to make America what she should be, the greatest 
industrial country in the world. Employer and employee 
should meet on common ground, the one willing and 
anxious to give to labor the share it produces, and the 
other contented with that share. The two should be 
brothers in a great industrial brotherhood, and work 
for each other's interests, and not like two enemies, each 
stealthfuJly watching every move made by the other, 
suspicious that it is for exploitation. 

The wage problem is important with every employer, 
because upon its successful solution depends efficiency. 
Efficiency is absolutely impossible with a Requisites 
working force dissatisfied with its pay. The for soiu- 
solution of the wage question lies largely in ^^°^ °^ wage 
the appKcation of a system of wage payment ^^° ^™' 
that appeals to both parties as being essentially Just, 
and one that is adapted to the varying conditions of our 
modern industrial system. It is folly to advocate a 
standard system, because such is impossible. Frequently 
several systems of wage payment are found in the same 
establishment, all giving satisfaction and working toward 
greater efficiency. It cannot be too strongly empha- 



3i6 ECONOMICS OF EFFICIENCY 

sized that only with satisfaction on the part of the labor- 
ing force with wages received may efficiency be at- 
tained. 

There are two parties to the wage problem, the one 
who pays and the one who receives wages. It is natu- 
Parties to ^^^ f^r the employer to try to get all the work 
wage he can for the wages that he gives, and for the 

problem. worker to try to get all the money he can for 
the work that he does. The meeting of employers and 
employees in order to try to adjust their differences 
gave rise to the different systems of wage payment. 

Until the last quarter century, employers gave 
little heed to justice and equity in deahng with em- 
Former ployees. They took every possible advantage 
attitude of to drive as hard bargains as they could in 
employers, j^jj-ing labor. The average employer beheved 
that the cheaper he got his labor, the lower would be 
his costs, and the greater his profits. Little did he care 
for the laborers, as long as he could drive them to put 
forth greater efforts. He was blind to the immediate 
relation between wages and efficiency, as well as between 
the hygienic and sanitary conditions of the working place 
and efficient work by laborers. Wage earners for self- 
preservation were driven to unite and to deal with 
employers collectively through unions. Employers are 
largely to blame for the bitterness which existed for a 
century after the introduction of the factory system, 
and which is found even to-day in many plants. The 
average employer until recently firmly believed that it 
paid to drive workers, by every possible means, to in- 
creased efforts. Workers were to him simply cogs in 
the great industrial wheel, and were treated like inani- 
mate objects rather than human beings with feelings and 
rights. With history showing that employers seized 
every opportunity to lower wages, is it a wonder that 



WAGES 317 

employees are to-day suspicious of any innovation on 
the part of employers ? 

One of the greatest tasks that the new efficiency move- 
ment has to overcome is the deep-rooted suspicion 
of employees against employers. The chief solution 
cause of this attitude has been the struggle of wage 
over wages. Wages are of the greatest im- problem 

, , 1 rj^-i and success. 

portance to every employer. ihey are usu- 
ally the cause of strikes, and are the chief cause of 
friction and antagonism between the two parties. Effi- 
ciency, with its demands of interest, enthusiasm, and 
loyalty on the part of the worker in the success of the 
enterprise cannot be approached, unless there is satis- 
faction with both parties over the wages paid. Wages 
may therefore be emphasised as the first important 
problem for every employer seeking efficiency to solve. 
The wage question is one which every employer must 
solve, and his success in reaching greater efficiency largely 
depends upon its solution. 

There are many ways of paying labor. With some 
kinds of work only one method of payment is possible, 
while with others different methods may be nq standard 
used. A method which proves successful in methods for 
one case may not in another. Because a cer- ^ plants, 
tain system of payment is satisfactory in one plant, an 
employer should not take it for granted that it will be 
in his. Before it is introduced, a careful study should 
be made of the plant, and the result may prove that it 
will fail under existing conditions. The great demand 
is a study of the particular plant, and a decision as to 
the best method for efficiency, remembering at all times 
that cooperation is a necessity, and the wage, to give 
that requisite, should be fair and just. Cooperation 
cannot be obtained by the mere payment of wages, or 
the giving of gratuities, but the chief question is whether 



3i8 ECONOMICS OF EFFICIENCY 

or not the wage is a fair one. Another thing to bear in 
mind is that no matter how satisfactorily a method of 
paying wages may appeal to the few, that the solution 
of the wage problem rests upon its satisfactory appeal 
to the many. 

The average employer usually makes the mistake 
of considering only the amount of wages earned by indi- 
Consider vidual members of his working force. He 
what is fails to consider what has been done to earn 

done to the wagcs. There is fixed in his mind what 

earn wages. ^ worker should earn, whether working by 
time or by piece, and if the earnings greatly exceed that 
amount, he is at once convinced that the pay is too 
high, and should be reduced. This attitude is one which 
has been handed down from generation to generation, 
and must be changed before any great progress can be 
made in efficiency. It cannot be denied that each worker 
is vitally interested in an increase of wages, and it is 
human for him to be so. Every employer is interested 
in a reduction of wages per unit of output in his place. 
Fairness and justice should be the basis of deciding the 
wage which the one is to receive, and the other to give. 

In a working force are found men of various degrees 
of ability. One is slow in movements while another is 
Requisites 1 Q^i^k. One may do in a given time a much 
for a proper larger amount of work than the one working 
wage next to him. One is more skilled than an- 

sys em. other. The question to solve in deciding 
upon a wage system is to discover one that will pay each 
according to what he does, rather than according to the 
time that he serves. Wherever possible, this should be 
done, but in some cases, labor must be paid according 
to the time served. The most efficient system of wage 
payment is that where a worker is paid according to 
some scheme whereby his pay is directly proportionate 



WAGES 319 

to his output. The ascertaining of a fair and just wage, 
and the willingness of employers to give and employees 
to accept it, is an important factor in assuring coopera- 
tion and efhciency. 

More wages to the average individual is the greatest 
encouragement to industry and progress. Wages should 
be increased to the point of contribution by l^^^j. |g ^^^ 
labor, but beyond that, the only possible way the only 
to increase wages is to make labor more pro- ^^^^°^ ^^ 

J i* npT- rn • j. i r -j. production. 

ductive. Ihe einciency movement has for its 
aim the making of labor more productive, and stands 
for a corresponding increase in wages. Employers 
should be willing to give in wages what is justly due 
labor. When employers realize that it is a business 
proposition to do so, and that they have no right to what 
labor actually produces, a better understanding will 
exist between the two parties, and the greater part of 
the battle for efficiency will be won. Laborers, on the 
other hand, should realize that there are factors in pro- 
duction assisting in increasing output other than labor. 
Buildings, equipment, machinery, and managerial ability 
contribute their share, and in some cases, one assists 
more than others. Each should receive its share accord- 
ing to the part taken in production. This is practically 
impossible to ascertain, and approximation is the best 
that can be done. Laborers and employers working 
together should try to ascertain approximately the part 
each takes in production, and each should be willing 
that the other receive his share. 

Employers usually recognize the fact that efficient 
men are worth more than inefficient, but many ,3. . 

11 -1 1 r How to 

do not know how to introduce a scheme of introduce a 
payment that will pay the efficient a fair "^w wage 
wage without trouble with the inefficient. ^^^ ^™' 
It necessitates great care and diplomacy. The workers 



320 ECONOMICS OF EFFICIENCY 

should be taken into confidence and shown how wages 
will be increased by following the instructions of the 
employer. Patience in instruction and a suitable re- 
ward for success usually win out. Employers should 
always bear in mind the deep-rooted suspicion of em- 
ployees, against any innovation, as only a means of 
exploitation. The suspicion exists and may be over- 
come by frankness, but if it is not, failure of any new 
system will follow. A careful study of conditions is 
necessary before any new system of wages is decided 
upon, so that the one selected may be the best system of 
reward for the particular kind of work performed in a 
plant. Openness, frankness, and justice on the part of 
employers in their dealings with laborers always pay, 
and these are essential in any system of wage payment. 
Laborers should be made to feel that a change is for 
their benefit, and that it is for the purpose of making 
them able to increase their wages. 

The earliest system of labor was a form of servitude. 
The lash and the whip were the chief means of increas- 
Servitude ^^S the output of laborers. Sackcloth cloth- 
earliest ing and the plainest food were the remunera- 
formof tion for services. Under serfdom, the lot of 
the workers improved. They were bound 
to the soil, and had to perform certain services for their 
lord and master. Slavery and serfdom gradually broke 
down, and the wage system took their place. It may 
be noted that servitude did not disappear with the 
introduction of the wage system, but the two existed 
side by side for years, and the abolishing of the former 
came much more slowly in some industrial countries 
than in others. 

Almost simultaneously with the breakdown of serf- 
dom, and the general appearance of the wage system, 
the laborer became the center of restrictive legislation. 



WAGES 321 

Rates of wages, apprenticeship, and other details of 
labor were fixed by some superior authority. Later, the 
growth of industry proved that the restrictive Restrictions 
measures were not economic and just, and under early 
they gave way to a system of contract. The ^^s® 
laborers on gaining their freedom of contract ^^^ ^™^' 
were found to be almost helpless in the hands of grasp- 
ing employers. The contest for freedom of contract 
was won by employers, and not by em- 
ployees. Employers foresaw the advantage system^ 
which they could take of unprotected and 
unorganized labor, and how they could profit by exploit- 
ing the helpless laborers. The poHcy of exploitation 
was severe, caused much suffering on the part of workers, 
and soon drove them to the formation of unions in order 
to protect themselves. 

The original and first wage system was paying a 
laborer for the time that he worked. From the earliest 
introduction of the wage system until to-day, 
time wages have been in all industrial coun- 
tries the commonest form of paying labor. The unit of 
time under the time wage system may be an hour, day, 
week, month, or year. A certain amount is paid for a 
unit of time, regardless of the amount of work performed. 
Wages are fixed by bargain between the worker and the 
employer. The bargaining may be done col- jr ^ ^ 
lectively at the dictation of a labor union 
which fixes a minimum rate, or it may be done by the 
individual workers themselves who fix their wages with 
their employers. The wages in the case of individual 
bargaining depend upon two factors, the relation of 
supply and demand of labor of the particular grade, and 
the skill of the laborer in bargaining, but in the average 
case, the latter is of little consequence. 

The fundamental principle underlying time wages 



322 ECONOMICS OF EFFICIENCY 

is that a certain sum of money is equal to the work 
Time wages '^^ ^ Certain Unit of time spent by any man 
never fair in a plant doing a certain kind of work. The 
and just sum, unless it is fixed by unions, may vary 

from place to place, and even from plant to 
plant. It takes for granted that every man shoveling 
sand in a particular plant is worth two dollars for ten 
hours' work, or every man laying brick in a particular 
place is worth five dollars for eight hours' work. It 
cannot be denied that there is always a difference, and 
often a large one, in the quaHty and the quantity of 
work performed by different men doing the same kind 
of work, and if all are paid alike, either some are not 
paid enough, or some are paid too much. The system 
of paying by time is never fair and just to all. All men 
are born free and equal, but all are not born with the same 
abihty or capacity. This appHes to workers of all 
kinds, and should as far as possible be considered in fix- 
ing remuneration for work. 

Time wages present many disadvantages. They put 
all men on the same level, and men are not paid accord- 
Disadvan- ^^S ^0 their efficiency. On the part of workers, 
tages of there is not any difference, whether one man 
time wages, jg more efficient than another, because it is 
practically impossible for him to get higher wages than 
others of his group. There is no incentive to increased 
efforts, diligence in work, or interest in what is being 

done. The good employee receives the same 
for work *^ pay as the one who loafs, so he has Httle or 

nothing to gain by putting forth greater efforts 
or taking more interest in his work. The fact that 
extra effort, greater skill, or more interest is not recog- 
nized stifles ambition, destroys interest of the laborer 
in his work, and prevents cooperation, so necessary for 
efficiency. The industrious and efficient employees be- 



WAGES 323 

come dissatisfied, and slacken their pace to that of the 
poor and inefficient. The employer who pays time 
wages usually gets the efficiency of the poor laborer, and 
there is a tendency to level speed to his pace. The aver- 
age man works just enough to hold his place, and where 
there is no inducement, the question arises, why should 
he do more. Why not save his energy for other things ? 

Time wages foster soldiering and loafing. Many men 
make a practice of soldiering even in the presence of 
their superiors, believing that there is a certain 
amount of work to be performed, and the less soldiering 
they do, the more employees will get work, 
or the longer will their jobs last. This erroneous and 
fallacious idea of curtailing efforts to increase the num- 
ber of workers or to prolong work is current among 
laborers. Time wages foster idHng on the part of many 
who develop the practice of awaiting the opportunity 
for playing pranks, talking, or joking with their fellow 
workers. How often does work practically cease, when 
the boss is called away to other parts of the building on 
some business errand, and at the first sign of his approach- 
ing return, every one returns to work, and works with 
greater vim, as if the pace was kept up during his absence. 
A worker was asked why such advantage was taken of 
his employer, and his reply was that it was all in a day, 
and why not have a good time when possible, and that 
the pay was the same to those who worked faithfully, 
as to those who had a good time at every opportunity. 

A great amount of idleness is due to the completion of 
a piece of work, and the workman waiting patiently 
until the foreman comes with another job. causes for 
Little or no effort is made on the part of wasting 
workers to get a new job, as soon as one is *™®- 
finished. Why not take advantage of a little rest 
because it amounts to the same thing as far as pay is 



324 ECONOMICS OF EFFICIENCY 

concerned ? It would be far better to have a system 
whereby it would interest a worker to keep steadily em- 
ployed, and be interested in the amount of work pro- 
duced from his efforts. It is human nature to take 
life as easy as possible, and with a worker it is natural 
for him to take an easy pace and pay little or no heed 
to what he does. Workers as a whole prefer to sell time 
rather than labor, and to perform in the time the 
amount of labor they consider proper for the pay. 

Thousands of dollars are lost annually through 

idling of time and soldiering. Frequently time 
wages cause increased activity of the unions, and labor 
troubles. The more industrious and efficient men find 
that they cannot increase their pay by putting forth 
greater efforts, or being more efficient, and so resort 
to other methods to try and obtain the result. They 
get all laborers performing their kind of work to demand 
an increase of pay, and the cry from both the efficient 
and inefficient is for more pay. A strike usually follows, 
and if successful, no one cares whether he does more 
work or not. 

Under the time system, it cannot be said that an 
employer is totally indifferent to the output of workers. 
How to find If ^^ employee is found frequently loafing, and 
what a man his output is below what is considered a mini- 
does, rnum, he is discharged, but the discovery 
depends on his attracting the attention of the fore- 
man. The loafer usually has his loafing down to 
almost a science, so that it is easily done without his 
being caught. Frequently, a worker works for a 

long time far below the minimum, and is not 
a°scknce^ discovered because his foreman has a large 

number to look after, and his attention has not 
been directed to the output of this particular worker. 
It i§ exceedingly difficult in an ordinary plant for a fore- 



WAGES 325 

man with several men under him to pick out the men who 
are not doing what is considered the minimum amount 
of work. A slow, steady, plodding worker, who to the 
eye is not accomplishing much, may in reality be doing a 
third more than a nervous, quick-moving worker. Where 
there is no incentive to increased effort, the average 
worker will do httle more than is necessary to hold his 
job, or not to have his pay decreased. Even then, there 
are so many ways of deceiving, and it is so hard to get 
the amount of output, that many are continued for a 
long time on pay when they are far below the average. 

In spite of all these disadvantages, time wages con- 
tinue to be the commonest form of remunerating labor. 
Due to the fact that it is the only system Time wages 
possible in many classes of work, time wages vs. piece 
must always occupy a prominent place in our ^^*®^- 
industrial system. Nevertheless, there are many kinds 
of work where other forms of remuneration are better 
suited, and work towards greater efhciency. Wher- 
ever it is possible, time wages should be replaced by a 
more efhcient system of pay. The wage system which 
induces men to put forth greater efforts is one where the 
remuneration is in some way directly proportionate to 
output. Time wages should be discarded and piece 
rates introduced wherever it is possible to measure indi- 
vidual performance. Where work cannot be measured 
in units produced, the time system is the only way of 
paying labor, as, for instance, with bookkeepers, firemen, 
engineers, etc. 

An increase in wages and a chance of promotion are 
two chief inducements for workers to take an interest 
in work, to put forth greater efforts, and to induce- 
cooperate for the success of a business. Where ments for 
these inducements are lacking, workers are ^°°^ ^°^'^- 
liable to be indifferent, with httle or no interest in work, 



326 ECONOMICS OF EFFICIENCY 

and with little desire to increase output. As far as these 
inducements are present and before workers under time 
wages, the more satisfactory will be this system of 
payment, and the greater will be the interest, coopera- 
tion, and enthusiasm of workers in the business, and the 
greater their efficiency. Frequently, promotion and 
increase in pay are due to favoritism. The 

Favoritism. - i ti • i i i 

foreman takes a likmg to a worker, and at the 
first opportunity increases his pay or promotes him, and 
pays little or no attention to his efficiency. Often- 
times, a capable worker is not promoted or increased in 
pay, due to the fact that in some way he has aroused the 
anger of the foreman. Either case arouses distrust on 
the part of workers, and causes them to lose interest in 
their work. Promotion in the ranks, or increase in 
wages due to favoritism, fosters antagonism and increases 
inefficiency. 

In some plants, different time wages are paid in the 
same class, and promotion is made from the ranks. 
Methods Increase in wages is based as far as possible 
forincreas- on efficiency. The more efficient men are 
mg wages, rewarded by an increase in pay, and the great 
difficulty is the ascertaining of those who deserve the 
increase, and who are more efficient than the others. 
With no records, extreme care should be exercised, and 
favoritism should never under any circumstances be a 
factor. The best results are obtained with a competent 
boss, and comparatively few men under his direction. 
He can easily by close observation ascertain, to a certain 
degree, the quality and the quantity of work of each 
worker. If a worker knows that his work is under 
observation, and that if he increases his output, his pay 
will be increased, there is an inducement to put forth 
greater efforts. Workers should also be assured that in 
case of a vacancy, the more energetic and efficient will 



WAGES 327 

be promoted. These two inducements give incentives 
for more efficient work, and good results with time 
wages. 

The more efficient method, wherever conditions are 
suitable, is to get individual records, and to base in- 
crease of pay and promotion on these. Where 
work is of the same class and gangs are small, records"^ 
the boss may without any inconvenience 
keep daily records of each of his men. Pay is based on 
the records, and the men know that the more efficient 
will receive the larger pay. A great amount of work 
by its very nature makes record keeping absolutely 
impossible, and the only measure of efficiency is the 
close observation of the boss. Wherever the character 
of the work is such that time wages are the only possible 
means of payment, care and judgment should Remedying 
be exercised in bringing all under observation, faults of 
and making all know that they are observed, *"°® wages, 
and that good work will be rewarded. If this is done, 
many of the faults of time wages will be remedied. 
Nevertheless, where it is possible to measure, in units 
of production, the work of a laborer, the most efficient 
way is to displace the old method by piece rates. 

The piece rate system is where a man is paid, not for 
the time that he spends, but for the amount of work 
that he does. It is not of recent origin, as „. 

, ., r • • • - 1 Piece rates. 

strikes for mcrease m piece rates occurred 
years before the introduction of the factory system. 
The factory system, nevertheless, gave great impetus 
to this method of remuneration, and the piece rate 
system increased in practice. Employers at first, and 
even in many cases to-day, introduce this system solely 
as a method for reducing labor costs. Piece rates, to 
be successful, should benefit both parties, and each should 
be willing and anxious for the other to profit. Piece 



328 ECONOMICS OF EFFICIENCY 

rates have caused much friction between employers and 
employees, because they are usually looked upon as 
a means to force extra effort with lower wages. 
Opposition to the system is not the fault 
of the system, but is due to ignorance and cupidity on 
the part of employers. Employers themselves are 
largely to blame for the many failures of piece rates, 
and the antagonism on the part of employees. 

Where friction has arisen over piece rates, it has been 
due chiefly to stupid methods of introduction. No 
Friction due system is used to ascertain the proper rates, 
to stupidity which are chiefly based upon guess, or upon 
in rate the judgment of foremen. The judgment 

"^' based on past experience is as a rule far from 

being correct. Some employers try to ascertain the time 
it takes to perform a certain task, on the basis of 
previous records, made by men employed on time wages. 
This fails to account for the fact that with the incentive 
offered by piece rates, the output of the worker may 
vary as much as 50 per cent over time rate. Pre- 
vious records are inaccurate, and form a very unsatis- 
factory basis for estimating piece rates. Records of 
past performance are a poor indication of what may be 
done by capable and industrious workers. No uni- 
form standards in the performance of a task make snap 
judgment a mere guess. The guess cannot help being 
inaccurate, and is the beginning of trouble. By fixing 
rates according to methods which are based chiefly on 
guess, it is only by chance that any kind of equitable 
rate is fixed. The whole problem of piece rates is the 
deciding upon rates satisfactory to employer and to 
employee. 

Employers do not make sufficient allowance for the 
increase in output due to piece rates, and the rates are 
usually high. A large increase in the weekly wages 



WAGES 329 

arouses an employer, who forgets that more work is being 
done than under time wages, and as soon as Rate cutting 
the wages rise above 25 or 30 per cent, he, the cause of 
thinking that he is paying his workers too *^°"^^®- 
Hberally, cuts the rate. The great bane of piece-work is 
rate cutting. In the past, and even to-day, many em- 
ployers beheve that a man should not under any circum- 
stances earn more than a certain sum, working either 
by day or by piece. Where wages are very much in- 
creased, the average employer cannot resist the tempta- 
tion to cut. This has been the cause of many failures 
of the piece rate system as well as many strikes. If 
strikes do not occur with rate cutting, bitterness arises, 
as the average worker beheves that it is only to increase 
the profits of the employers. Rate cutting causes lazi- 
ness and lack of interest and enthusiasm, and works 
toward inefficiency and an increase of costs. 

The old method is to set a rate and leave it to the 
worker to solve the problem of making wages, and as 
soon as he solves it, and increases his wages pjecg rates 
above a certain amount, to cut the rate. The under the 
workers are usually responsible for keeping °^^ system, 
machines and tools in condition, and for getting work 
to and from the machines. The employer places as 
much as possible of the burden of getting work per- 
formed upon his men. In one factory, a person noticed 
that the employer was not as painstaking as formerly 
about repairs, tool sharpening, and taking care of ma- 
terials. On being asked why, he answered: "I have 
put my men on piece rate, and it's up to them now. If 
they wish to earn wages, let them use extra care to see 
that machines are in repair, and the goods taken care 
of." This old practice has caused an endless amount 
of friction between employers and employees. To pre- 
vent friction, rates should not be fixed under the old 



330 ECONOMICS OF EFFICIENCY 

method, since it is almost impossible to make a rate, 
without the necessity of later readjusting it, and this 
is the cause of the failure of many piece-rate attempts. 

Employees are more or less suspicious of making too 
high wages, because they beheve that then their rates 
Piece rates ^ill be cut. It is a known fact that capable 
foster workers will soldier rather than make wages 

soldiering. j.|gg more than 20 or 25 per cent above day 
wages, knowing that if they do, rates will be cut. The 
capable or more efficient hold back for the slow, who 
would suffer if rates were cut. The fear of making a 
record which might be used for a cut in rate causes sol- 
diering. It is claimed that piece rates have developed 
systematic soldiering to a remarkable degree. Workers 
after one or two cuts decide that there will not be another 
if soldiering will prevent it. Piece rates very often 
under the old method decrease efficiency. The men 
learn that the management is willing to pay a certain 
amount and no more, and soldier so as to make their 
earnings by piece rate about equal to it. Even to-day, 
the bare mention of piece rates causes great opposition 
on the part of many employees. This opposition is 
more or less justified by the experience of history in 
the working of the system. 

Piece-rate fixing is based upon two factors, the task 
and the rate. Rate cutting results from ignorance 
The task ^^^ carelessness in ascertaining the task and 
and the in fijong the rate. If these defects can be 
rate. remedied, there is not the least doubt that 

piece rate would prove a most satisfactory system 
of paying labor, where such a system is possible. It 
solves the question which efficiency sets before us of 
how to encourage and reward efforts in order to ac- 
compHsh more efficient results. To obtain efficiency, 
men should be satisfied that they are getting a square 



WAGES 331 

deal, and are receiving a Just and fair reward for their 
efforts and skill. 

Opposition to piece rate may be avoided if extreme 
care is used at the outset in estabHshing a just rate. 
This demands a careful study of conditions How to es- 
precedent to its installation. The task and tabUsh a 
the rate should be properly fixed, and then J^^trate. 
there would be no reason for a cut. The whole problem 
is to get the proper piece rate at the outset, and to ob- 
tain a just rate, it should not be based on guess- 
work, but on careful study and investigation, 
in order to ascertain what a task should be, the time it 
should be performed in, and what is a fair and just rate, 
so as to give labor its just reward for its share in pro- 
duction. The best and the only proper method is to 
ascertain the task and the time by careful time and mo- 
tion studies. This takes the work of fixing the task and 
the rate out of the hands of those who fix them by guess, 
and places it entirely in the hands of specialists, who as- 
certain them by careful observation, scientific study, and 
experimentation. By ascertaining the time in which 
the average worker under ordinary local conditions can 
perform the ascertained task, a suitable rate can easily 
be determined upon, which will give an equitable and 
just rate, fair to employer and to employee ahke. 

A careful study should be made of factory conditions, 
and with equipment and conditions as they are, the 
rate should be such that the average man will Duties of 
earn from 30 to 60 per cent more under piece the 
rates than he would under time wages. Ex- employer- 
treme care should be taken that it is not necessary to work 
at a speed which is injurious to health. The employer 
should keep his equipment thoroughly up to date, and 
materials and tools always on hand when needed, so that 
there is no unnecessary delay on the part of the worker. 



332 ECONOMICS OF EFFICIENCY 

The members of every working force may be divided 
into three classes : workers below the average, average 
workers, and workers above the average. It 
vTotkeis^ ^^ ^^^ average worker who should be carefully 
studied in making tests and experiments to 
decide" upon task [and rate. Tests and experiments 
should determine the best method and the time required 
The average ^^ ^^^ average man, to do the task with the 
worker is factory equipment. The method should be 
the one to standardized and the workers instructed in its 
" ^' use. The equipment should always be main- 

tained in the same degree of excellence as when the ex- 
periments were made. In the determination of the 
rate, account should be taken of the fact that the men 
will become more expert with time, so that what might 
be considered a somewhat low rate at first may be satis- 
factory after a short experience. In fixing the time, 
allowance should be made for necessary delays, and 
where the work is very exacting, time should be allowed 
for rests in order to prevent injurious fatigue. 

The men below the average should be instructed, 
and if they cannot make the average, some other kind 
The men of work should be found for them. There 
below the should be no maximum wage limit to the more 
average. efficient, and their wages should depend upon 
their degree of efficiency. By extreme care in prepara- 
tion and in proper installation, a rate may be obtained 
which will be fair and just to both employer and em- 
ployee, and which will not give cause for cutting. The 
increased interest and loyalty of the men in the work 
will make them cooperate with the employer for increased 
efficiency. 

An important precaution in piece rates is that the 
workmen should not be allowed to overfatigue them- 
selves, or work to the point of injuring health. The rate 



WAGES 333 

should be such that overfatigue is not necessary to earn a 

good wage. The ambitious should not be allowed to tax 

their strength in their endeavors to earn a few 

more dollars. Care in not allowing workers precautions. 

to overtax their strength, which impairs 

their health and efficienc}^, is an important duty of the 

management. The workers should be taught the evil 

consequences of overtaxing strength, and how it brings 

a loss of earning power that more than offsets the few 

extra dollars earned in the present. 

In every instance, workers should be taken into con- 
fidence by employers in ascertaining rates and in the 
installation of a piece-rate system. The first workers' 
essential is the cooperation of employees, which share in 
may be obtained only by being frank, open, fi^^s rates, 
and just with them. Employees should be shown that 
piece rates are for their benefit, and will enable the 
average employee to earn a more equitable wage, and 
the more efficient, a reward proportionate to their output. 
The necessity of making proper tests to ascertain proper 
rates should be carefully explained. As soon as em- 
ployees learn that there is nothing underhand, and that 
the change is for their benefit, they will, in the majority 
of cases, cooperate, and their cooperation assures success. 
Employees should assist in ascertaining the proper task, 
and be consulted as to the rate, and when a satisfactory 
rate is obtained, the employer should bind himself to 
maintain it without cutting, unless unforeseen circum- 
stances should arise that would make adjustment nec- 
essary. But adjustment should take place only with 
the cooperation of the workers. The average worker is 
a fair-minded, open, and just person, and will every time 
meet the employer halfway and do his part to obtain a 
fair wage. If the average employer were more cognizant 
of this fact, and would be just, open, and fair, we would 



in some 
cases. 



334 ECONOMICS OF EFFICIENCY 

have less friction, more cooperation, and greater effi- 
ciency on the part of the working force. 

It has been charged that piece rates rest upon a fallacy 
that permanent just rates can be predetermined. This 
is quite true, because conditions are always 
may be ^"^ changing, and American genius is always active 
necessary in devising new machines and methods. If 
the management goes to the expense of intro- 
ducing new machines and new methods that 
greatly increase the output of workers without any in- 
crease of effort, the rates should be adjusted. The em- 
ployees should be told frankly the situation, and then 
the majority will realize the justice and fairness of a 
reduction, and will not oppose it. Proper precautions 
should be taken in fixing rates, and then rate cutting 
would be necessary only in exceptional cases, and should 
take place only with the assistance of employees. 

A method of encouraging employees to increase efforts 
and become more interested in a business is profit shar- 
ing. This is giving employees, in addition to 
sharing their regular wages, a certain per cent of the 

net profits of a business. Strictly speaking, it is 
not a method of wage payment, but many look upon it 
as such, and on that account, it is considered with the 
other methods. The practice is more prevalent in Eng- 
land than in the United States, but we have in this 
country many strong advocates of profit sharing as 
the best method for obtaining the cooperation of the 
working force. It is slowly increasing in favor, and 
several employers of large forces give it considerable 
credit in increasing the efficiency of their working forces. 
Method of Profits are divided between employees and 
distributing employers, and at first sight, this seems equi- 
profits. table and just. The percentage of profits 

given to employees varies with individual cases, and may 



WAGES 335 

be divided among all employees, or restricted to those of 
a certain time of service. The distribution may be 
equal, or based to a certain degree on salary received, 
or on years of service. 

The distribution of profits to workers depends upon 
the existence of profits. Profits depend upon many ele- 
ments, of which labor is only one, and the speculation 
labor of a single individual a very small frac- as to exist- 
tion. Errors of judgment in buying or in ®"<^® °^ 
selhng, excessive losses through bad debts, ^^° 
unforeseen happenings which affect the markets for 
goods produced or sold, bad management, losses through 
accidents or fires, are all costly, and may be sufficient 
to wipe out profits. Men who have worked faithfully 
throughout the year expecting at the end a good-sized 
bonus may be sorely disappointed to find no profits. 
There are so many elements affecting profits other than 
labor, that it is always more or less of a speculation as 
to the existence of profits at the end of a year, and if 
they will be sufficient to make the amount distributed 
attractive to individual workers. 

On the other hand, the greater part of profits is usually 
due to causes over which labor has no control. Im- 
proved methods of production, good manage- causes for 
ment, capable executive heads and superin- profits other 
tendents, shrewdness in buying so as to take ^^^^^^^°^- 
advantage of favorable markets, and in selling to best 
advantage, carefulness in granting credit, good fortune 
in not having losses from fires or accidents, all assist in 
adding to profits. There are so many elements con- 
tributing to profits that it cannot be said that they are 
due to labor alone, and it is difficult to say what part 
is due to labor. The distribution of profits to workers, 
or what is known as profit sharing, should be looked 
upon as a gratuity and not a system of wage payment. 



336 ECONOMICS OF EFFICIENCY 

The degree to which the gratuity affects greater interest 
and cooperation on the part of a working force, is im- 
possible to say. 

There are many disadvantages in profit sharing, and 
these possess such force that the incentive is not suffi- 
Disadvan- ciently great to induce workers to put forth 
tagesinprof- increased effort. The bonuses are more or less 
it sharing. ^j ^ speculation, and come only after long 
intervals, usually a year. The distribution is not ac- 
cording to efficiency, but usually according to classes, 
Share does ^^^ efficient and the inefficient in a class being 
not depend rewarded alike, and by the same sum. A 
on effi- worker will not be likely to increase his ef- 

ciency. forts to increase output when his share will 

not be any more than that of the one who idles away his 
time. The share given to a worker does not depend 
upon his efficiency, but simply on the fact that he is a 
member of a class coming within the line of distribution. 

The remoteness and the probability of a re- 
of^rewarT^^ ward are not sufficient inducements to make 

the average worker take greater interest in his 
work or increase his efforts to increase his output. To 
a certain degree profit sharing penalizes the efficient 
worker by making distribution ahke to good and poor 
workers. Easy work is more attractive than hard with 
a possible reward to be shared with others many months 
No way to ^^ the future. Again, there is no way on the 
know extent part of workers to know the extent of profits, 
of profits. ^^^ whether or not, the promise of the em- 
ployer is carried out. Accounts are not audited, and 
the word of the employer must be taken. Frequently 
dissatisfaction arises, due to the fact that employees 
think that a correct accounting has not been made. 
Profit sharing is so remote in its reward, so impartial 
to efficiency and extra efforts, and based upon so many 



WAGES 337 

contingencies, that it gives Httle incentive to efficiency 
and extra efforts. It requires a more immediate and 
direct reward to arouse men to action. 

The contract plan is a system of wage payment oc- 
casionally found in the United States and Great Britain. 
A certain rate is agreed upon for a job between 
the management and a contractor, who uses gys^em'^ 
the shop equipment but hires his own labor. 
The difference between what he gets for his job and 
what it costs to get it done is his profit. The contract 
system is frequently used in the case of unskilled work 
for which laborers of a low type, usually foreigners, are 
employed and invariably results in slave-driving habits 
which will not be tolerated by American 
laborers. There is no knowledge of what operates, 
the job will cost, and the price is fixed by 
higgling between the contractor and the management. 
Each uses his skill, the one to get as high a price as 
possible, and the other, as low as possible. With the 
average worker, the ordinary contract system will con- 
tinue to lose favor, but there are various modified forms 
of it which may continue in practice and win favor for 
some time. 

QUESTIONS 

1. What is the relation between wages and efficiency? 

2. What are the requisites for a proper wage system ? 

3. What are the various systems of pay? 

4. What are the advantages and disadvantages of time wages ? 

5. In what way do time wages foster soldiering ? 

6. What are piece rates and when should they be used ? 

7. Account for the opposition of unions to piece rates. 

8. What precautions should be taken in the installation of a 
piece-rate system ? 

9. In what way do piece rates foster soldiering ? 

10. Give the difference between the old system of piece-rate 
fixing and the new. 
z 



338 ECONOMICS OF EFFICIENCY 

11. How may a just piece rate be established? 

12. What are the duties of an employer in establishing proper 
piece rates ? 

13. What precautions should be taken to protect the health of 
workers under piece-rate systems ? 

14. What is the profit-sharing system ? Mention different 
methods of profit sharing. 

15. Give the advantages and disadvantages of profit sharing. 



REFERENCES 
Books 

G. L. Bolen, " Getting a Living," Ch. V; F. T. Carlton, "The 
History and Problems of Organized Labor," Ch. VIII ; S. Dean, 
"Shop and Foundry Management," Article IV; L. R. Dicksee, 
"Business Organization," Chs. VI, VII, XV ; H. L. Gantt, "Work, 
Wages, and Profits," Chs. III-V ; N. P. Oilman, "Profit Sharing" ; 
C. B. Going, "Principles of Industrial Engineering," Ch. VII; 
S. Kirschbaum, "Business Organization and Administration," 
Ch. XII; F. R. Mason, "Business Principles and Organization," 
Chs. XI, XV; J. L. Nicholson, "Nicholson on Factory Organiza- 
tion and Costs," Ch. I ; C. C. Parsons, "Business Administration," 
Ch. XV; The Library of Business Practice, Vol. II, pp. 1 21-156; 
W. H. Tolman, "Social Engineering," Ch. VII; F. E. Webner, 
"Factory Costs," Ch. IX. 

Articles 

W. J. Ashley, "Profit Sharing," Quarterly Review, Vol. 219, 
pp. 509-530 ; B. Buxbaum, "Wage Systems in Germany," Ameri- 
can Machinist, Vol. 35, pp. 827-829; D. Carnegie, "Systematic 
Piece-Work Pricing," Gassier, Vol. 18, pp. 74-76; J. E. Chace, 
"Setting Piece-rates with Science," Factory, Vol. 7, p. 16; R. 
Clark, "Why Profit-sharing Schemes Fail," System (English 
Edition), Vol. 25, pp. 231-234; H. P. Clausen, "Speeding up Pro- 
duction for Establishing Piece-work Rates," Engineering Maga- 
zine, Vol. 41, pp. 63-68; H. Diemer, "The Fixing of Piece-work 
Rates," Engineering Magazine, Vol. 26, pp. 169-176; B. A. 
Franklin, "Quality Piece-work," Engineering Magazine, Vol. 41, 
pp. 273-278; B. A. Franklin, "Gang Piece-work," Engineering 
Magazine, Vol. 41, pp. 457-460; J. B. C. Kershaw, "Co-partner- 



WAGES 339 

ship and Profit Sharing as a Solution of the Wages Problem," 
Engineering Magazine, Vol. 43, pp. 837-845; H. F. J. Porter, 
"Paying for Work — Not for Time," Factory, Vol. 10, pp. 231 + ; 
H. F. J. Porter, "Making the Most of Day Work," Factory, Vol. 
10, pp. 341 +; W. D. Scott, "Wages," System, Vol. 18, pp. 492- 
496; J. C. Smith, "Theory of Equitable Profit-sharing," West- 
minster Review, Vol. 180, pp. 492-512 ; C. B. Thompson, "When 
Higher Wages Pay," System, Vol. 22, pp. 339-348 ; J. G. Thomp- 
son, "Present Work and Present Wages," Quarterly Journal of 
Economics, Vol. 24, pp. 515-535- 



CHAPTER XV 

Scientific Piece-Rate Systems 

Various systems of pay have during the last few 
years been devised to additionally reward men for in- 
Halsey creased efforts and greater output. The 

premium earKest method is the giving of premiums to 
plan of wage jj^gn who perform their tasks in less than a cer- 
paymen . ^^^^ allotted time. There are in practice many 
ways for deciding and awarding premiums, but the one 
which has reached the greatest favor in the United 
States and Great Britain is the Halsey premium system. 
This is named after its originator, Mr. F. A. Halsey, 
who, when he devised the system, was employed by the 
Rand Drill Company of Sherbrook, Quebec, Canada. 

A certain allotted time is allowed for the performance 
of a task, and is ascertained by a careful study of the 
records of the performances of average men in 
operates ^^^ past. Men are paid their regular time 
wage, regardless of what their output may be, 
and if they perform their tasks in time less than that 
allotted or standard, they receive a premium for the 
time saved. The premium depends upon doing the 
task in a shorter time than that of the recorded per- 
formance of the average man in the past. Men usually 
receive their pay in two envelopes, one containing the 
regular time wage and the other the premium earned 
during that time. It is optional with the men whether 
they take the premium or not, but it is very rarely 
refused. Suppose, for example, the time for a certain 

340 



SCIENTIFIC PIECE-Rx\TE SYSTEMS 341 

task is ten hours and the pay thirty cents an hour. If 
a man performs the task in eight hours, he saves two 
hours. The full amount of the value of the time saved 
is not given, but a percentage varying from 30 to 50 
per cent. The percentage varies in different shops 
and with different kinds of work. The value of the 
time saved is divided with the employer, as a reward 
for the extra wear and tear on the plant and equipment, 
and extra waste resulting from more rapid work. With 
the sharing of profit with the employer, there is not 
the Hkehhood of cutting rates. If the distribution for 
time saved is on the basis of 50 per cent, then the worker 
will receive for the task 8 X .30, $2.40, plus a premium 
of ^ of .60 equals .30, or a total of $2.70 for eight hours' 
work, or approximately $3.37 instead of $3.00 for ten 
hours' work. 

Wherever possible, all work is given a standard time 
which is printed on cards, as well as the percentage given 
for time saved. These are either given to the 
workers or they have access to them, so payment 
workers know when they receive a premium 
and how much. Daily records are kept of the units of 
work performed by each worker. Ascertaining the 
premium is a simple matter of bookkeeping. The 
timekeeper finds that for a week John Brown performs 
ten units of work. He looks at the standard time card 
and finds that the standard time for each unit is eight 
hours, and the rate per hour thirty cents. John Brown 
works ten hours a day and during the week performs 
eighty hours of work in sixty hours, and accordingly 
saves twenty hours. The week's wage of $18.00 is 
paid in the regular weekly pay envelope, and in a sepa- 
rate envelope is placed the premium earned during the 
week, which if the distribution is on the basis of 50 per 
cent, is ^ X 20 X 30, or $3.00. 



342 ECONOMICS OF EFFICIENCY 

The time allotted for a task is not based on scientific 
study, and no attempt is made to obtain standard con- 
The ascer- ditions or standard methods. A worker is 
taining of left to himself to devise and to find ways of 
standard shortening standard time. No limit is placed 

upon earnings. The management undertakes 
to keep each worker supplied with work during the work- 
ing days, so that he may not be handicapped by waiting 
for new work. The serious problem under the Halsey 

system is fijdng the standard time. If extreme 

Precautions. -^ . , • i , i . • i i 

care is not exercised, the time may be made too 
low and earnings are excessive ; or too high, and then the 
earnings may be such that few earn premiums, and this 
takes away the incentive for work. The system with 
a fair standard of time encourages workers to put forth 
their best efforts to increase their output, and it further 
encourages them by making the reward immediate and 
substantial. Workers who do not do their best are not 
punished, as every one receives the daily wage. The 
Halsey system, with care in getting standard times so 
that cuts are not necessary, is a successful system of 
paying labor. No change is necessary to introduce the 
system, and the premium if substantial induces workers 
to put forth their best efforts. The records kept will 
show the men below the average. If they remain so for 
any length of time, and are not able to make the 
standard time, their places should be taken by others. 

A modification of the Halsey premium system is 
that credited to James Rowan, a member of a prom- 
Rowan inent firm of engine builders of Glasgow, Scot- 
premium land. The plan is known as the Rowan 
system. premium system. The standard time is 
obtained as in the Halsey system by a careful study of 
past records of average men. The time saved is con- 
verted into a percentage of the standard time^ and this 



SCIENTIFIC PIECE-RATE SYSTEMS 343 

is the percentage of the regular pay that goes to the 
worker as his premium. The worker accordingly re- 
ceives as a premium the percentage of his regular pay 
that the time saved is of the standard time. If, for 
example, the standard time for a unit of work is ten 
hours and the pay thirty cents an hour, and a worker 
does the work in eight hours, the time saved is How it 
two hours, or 20 per cent of the standard time, operates. 
The premium is therefore 20 per cent of 8 X .30, or .48. 
It is no more difficult to record than the Halsey pre- 
mium system. If John Brown during a week performs 
ten units of work, and the standard time for each unit 
is eight hours, therefore during the week of sixty working 
hours, he does the equivalent of eighty standard hours 
and saves twenty hours. The time saved is therefore 
25 per cent of the standard time. If the regular pay is 
thirty cents per hour, the weekly wage equals $18.00 
and the premium $4.50. A formula for finding the 

premium is equals premium, where A equals 

the standard time, and B the actual time consumed. 
From this formula one may see that under no circum- 
stances can any worker more than double his regular 
daily wage. This system has met with considerable 
favor in England but Httle in the United States. 

As a result of the movement for scientific investiga- 
tion of operations, three new systems of pay have been 
introduced and have attracted considerable 
attention. Perhaps the most favored is that system °°"^ 
introduced by Mr. Gantt and sometimes 
called the Gantt bonus system. This is a combination 
of time and piece rates. Mr. Gantt places great stress 
upon the task and the time required for its perform- 
ance. Best methods are ascertained for the perform- 
ance of work and made standard. These are taught to 



344 ECONOMICS OF EFFICIENCY 

workers by competent instructors. The best machinery 
and equipment are provided and maintained in best 
How stand- ^^P^^^j ^^^ provision is made for providing 
ardtimeis workers with proper tools and proper quan- 
ascer- tities of materials. Working conditions and 

environments most conducive to health and 
work are provided. Careful time studies and numerous 
experiments are made to ascertain the proper time for 
a task. The time allotted takes into consideration the 
conditions existing in a plant, necessary delays, and rest 
periods if such are given. When the workers are taught 
standard methods for performing tasks, and the plant is 
standardized, the men are paid on the bonus plan. The 

best methods and tools for performing work 

are carefully worked out and given to workers 
as instructions. A worker follows instructions, and if he 
accompHshes the task in the time allotted, he gets time 
wage and bonus. If he fails to do so, he gets his time 
wage, but is supposed to report to the superintendent 
that he has failed to accompHsh the task in the allotted 
time. Inspection is made of the instructions, and if they 
are found to be correct, the worker is given further in- 
struction, and if after several trials he cannot make the 
task in the time set, he is changed to another class of 
work. 

The time taken by the average worker is carefully 
ascertained. The average worker and not the most 

efficient is the one who is studied, and the one 
worker is ^ who is Considered in allotting the time. The 
the one discovcry of the average worker is not by 

studied guesswork, but is ascertained by careful tests 

and experiments. Mr. Gantt insists that 
guesswork in setting tasks should be eliminated. His 
ideal is where "the best expert available investigates the 
work, standardizes appliances and methods, and sets the 



SCIENTIFIC PIECE-RATE SYSTEMS 345 

task that involves utilizing them to their best efficiency." 
It stands to reason that if accuracy is to be Elimination 
attained, the use of the stop watch is indis- of guess- 
pensable. The methods adopted by Mr. '^°^^- 
Gantt eliminate guesswork, the great cause of mischief 
and trouble between employer and employee. 

Mr. Gantt reahzes that precautions should be taken 
not to make the task too difficult or too easy. It should 
be possible with conditions, machines, and Tagknot 
tools furnished, and by the average trained too difficult 
man in the time allotted. It is necessary to nor too 
emphasize that it is the average trained man, ^^^^' 
because a man untrained may not accompHsh the task 
in the time set, but the average trained man should. 
If the task is too difficult and only possible for the 
most efficient men to attain, it will not be conducive to 
increased efforts and will cause discontent. This de- 
feats the purpose of the system. Again, if the task is 
too easy, earnings would be too large. The chief prob- 
lem is fixing the task, and with careful study, experi- 
menting, and time and motion studies, it is accurately 
and scientifically determined. After the task has been 
fixed and the time ascertained, the next important prob- 
lem is fixing the rate. Mr. Gantt says that the task and 
the rate should be such as would make it possible for a 
competent workman to earn from 20 to 100 per cent 
more than day pay. There should be sufficient induce- 
ment for extra effort in order to obtain the best results. 

Rate cutting, the cause of so much trouble in the 
ordinary piece-rate system, is eliminated because the 
Gantt system of estabHshing task and rate is j^^ ^^^ 
the result of careful study and scientific in- mum limit 
vestigation. There is no maximum limit "p°° 
placed upon the efficiency of any worker, and ®^^^^s^- 
his reward is increased with his efficiency. There is 



346 ECONOMICS OF EFFICIENCY 

no object in soldiering to prevent rate cutting, and 
soldiering is almost entirely prevented. If a 
eliminated. ^^^ ^^^^ ^^^ reach the Standard after instruc- 
tion, his instructor has to find out the cause, 
and if it is due to laziness or unwillingness to put forth 
effort, the man is changed to other work or discharged. 
If the fault is due to lack of instruction, it is the work 
of the instructor to take special pains to teach the 
worker patiently in the best methods until they are 
mastered. Where it is impossible for a man to learn 
best methods, he is changed to other work or discharged. 
Employers should remember that workers can do 
only a certain amount of work in a day without injurious 
results, no matter what the reward is. In fix- 
caudons'^^' ^^S the rate, the employer should take this 
into account, and fix a rate where the desired 
inducement will be present without a worker working 
to the point of injurious fatigue. A worker should not 
be allowed to work at a pace that will impair health, 
because whatever impairs health, impairs efficiency 
and is a dollars-and-cents proposition to both employer 
and employee. An important problem is not to get a 
large output at the expense of health, but to get the 
largest possible output with the energy expended that 
will not impair health, and to reward the laborer as 
Liberally as possible for his efforts. Any management 
which allows workers to become impaired in health will 
soon find itself seriously handicapped by an inefficient 
working force. The question is what amount of work 
can the average laborer perform without fatigue or im- 
pairing his health. 

Mr. Gantt does not advocate urging workers to the 
point of exhaustion, or to the point of injurious results, 
so as to undermine their health and devitalize them. 
This fallacious charge has so often been made. He real- 



SCIENTIFIC PIECE-RATE SYSTEMS 347 

izes as well as any student of efficiency, that efficiency 
can only be obtained and maintained by a healthy work- 
ing force, and whatever undermines health Gantt sys- 
and causes dissatisfaction undermines effi- tem and 
ciency. The increase in output and in wages ^®^*^- 
claimed by Mr. Gantt for his system comes not from 
the expenditure of an extra amount of energy, sapping 
vitality and strength, but from other causes, chiefly 
those of converting a great amount of the wasted energy 
under the old methods into productive results, through 
providing best possible tools, machinery, methods, and 
working conditions. 

The worker who performs the task in the allotted 
time is given a bonus. At first, the bonus was fixed, 
and there was no inducement for a worker to 
do more than just sufficient to earn the bonus. 
This was later changed to paying the worker the bonus 
allowed for doing the work in the allotted time, plus 
an additional bonus equal to the percentage of the time 
saved. This gives an inducement for further effort, and 
is more satisfactory. 

Workers who perform tasks in the allotted time are 
encouraged to make suggestions for better methods of 
performance. If on careful experimentation „ 

J 4. 4.- 4.- 4.\, 4- 4.1. Suggestions. 

and testmg, a suggestion proves that the 
average trained worker may perform the work in less 
than the standard time, the suggestion is adopted, the 
standard is changed, and the workers are instructed to 
do the work under the new change. The worker mak- 
ing the suggestion is rewarded. Mr. Gantt 
further rewards foremen for the men under forrmen °^ 
them making bonuses. A bonus is given to 
the foreman for each man under him who performs his 
work in standard time, and a further bonus if all make 
the bonus. This gives an inducement for the foreman 



348 ECONOMICS OF EFFICIENCY 

to take special care to see if any men do not receive the 
bonus, and to devote his energies to bring them up to 
the standard, and earn the extra bonus. 

The great essential for a satisfactory and efficient 
working of the Gantt system is the support and the 
cooperation of the working force. With jus- 
tain the CO- tice and fairness on the part of the employer 
operation in fixing the task and the remuneration for 
°**^® the average trained worker, there is every- 

thing to gain and nothing to lose on the part 
of the working force with the introduction of this sys- 
tem. The employer should be open, frank, and just 
with his employees. He should explain in detail the 
working of the system, and show that its introduction 
will increase earnings, reward according to efficiency, 
and that overwork and overfatigue will not be neces- 
sary to earn a fair wage. With careful explanation and 
proper understanding of a proposed change, the average 
employee will be ready to follow the instructions neces- 
sary to carry out the change. This system may be used 
to exploit as well as other systems. The employer 
should expect to be just and to give a fair and just re- 
ward for labor. Employees, on the other hand, should 
be satisfied with a just reward. 

Employees should assist and be consulted in ascer- 
taining task and time, and should Hkewise be consulted 
Share of ^^ fixing remuneration. They should be im- 
empioyees pressed with the fact that fairness and justice 
in fixing aj-g what the employer is seeking, and that he 
is wilHng that his employees should give their 
assistance in ascertaining the proper task and its just 
remuneration. The success of the Gantt system de- 
pends upon fixing the task and its remuneration. The 
working force should be satisfied or they will not coop- 
erate and the purpose of the system will not be obtained. 



SCIENTIFIC PIECE-RATE SYSTEMS 349 

The cooperation of the working force in fixing task and 
remuneration works for harmony and the success of 
the system. 

A second method of remuneration demanding scien- 
tific investigation of conditions and methods is the sys- 
tem devised by Mr. F. W. Taylor, heralded as Differential 
the father of the widespread scientific man- piece-rate 
agement movement. Mr. Taylor's system is ^y^^®"^- 
known as the differential piece-rate system. As under 
the Gantt system, every task is studied by experts, 
carefully analyzed into its simplest parts, and 
the best possible methods ascertained for its 
performance. Careful time studies are made of the 
performance of the task, and the necessary time for its 
performance obtained. The time allotted takes into 
consideration the conditions existing in a plant, neces- 
sary delays, and rest periods, if such are needed. Stand- 
ardized conditions, best possible equipment, machinery 
and tools always in the best repair, the working conditions 
most conducive to health and work are requisites for the 
system. After the best methods are ascertained 
and made standard, the workers are instructed 5^!^^,!^*^*^°° 

• r 1 1 cards. 

by competent mstructors to perform the tasks 
in the standard way. Instruction cards are made out 
for each task, giving standard methods for performance, 
tools to be used, and directions to be followed. In 
every case, the worker follows closely the instructions 
laid down. 

The system punishes and rewards. If a worker does 
not perform his task in the given standard time, his 
rate of pay is lower than if he does. It offers 
for the same work, a higher piece rate for gntiairate" 
standard time and perfect work, and a lower 
rate for slower time. Mr. Taylor uses two different rates 
for the same task, but there is nothing to prevent the 



3 so ECONOMICS OF EFFICIENCY 

use of more than two. The differential scheme of 
Mr. Taylor allows a lower rate for not finishing on 
schedule time, but no increase in rate if finished in less 
than standard time. There is an inducement to reach 
standard time but none to produce in less than standard 
What is time. Mr. Taylor says that the task should be 
a first-class so difficult that only first-class men can per- 
man? form it in standard time. If the task is so 

difficult that the average man in a class cannot perform 
it in the allotted time, the incentive to increased effi- 
Precaution ciency is restricted to a small number, and 
infixing the System produces friction rather than an 
task. increase in efficiency. It should be possible 

for the average man to perform the task in the allotted 
time and get the higher rate. Men below a first- 
class man should be, according to Mr. Taylor, given 
additional instruction so that it will bring them up to 
the standard. If after careful instruction, this is im- 
possible, they should be given other work. The pur- 
pose of Mr. Taylor's system may be easily defeated by 
making the task too difficult. This has been the cause 
of many failures of the system. 

Mr. Taylor's differential rate works as follows : If 
after careful investigation it is found that two units 
of a certain kind of work can be done in an 
in operation, hour by a first-class man working under stand- 
ard conditions, with best equipment and ap- 
pliances, and trained in best methods, two pieces an 
hour are made the standard. If a man makes two 
pieces or more, he receives fifteen cents a piece, but if 
he does not, twelve cents. If he finishes four pieces 
in an hour, his pay is sixty cents, but the task is so 
difficult that such an increase is phenomenal and rarely 
occurs. If a man makes one and a half pieces an 
hour, his pay is only eighteen cents. Mr. Taylor's 



SCIENTIFIC PIECE-RATE SYSTEMS 351 

system is undoubtedly the most difficult to introduce 
and to maintain. It sounds well from a theoretical 
point of view^ but is not nearly as practical as Mr. 
Gantt's or Mr. Halsey's. Mr. Gantt furnishes a regular 
time rate and Mr. Taylor does not. Mr. Gantt rewards 
all who make the task in the allotted time and does not 
punish those who do not — except if they cannot make it 
after further instructions, they are transferred or dis- 
missed. Mr. Taylor punishes as well as rewards. If 
care is not taken, the punishment may be so severe that 
the antagonism which it arouses causes its failure. 
Mr. Taylor strongly emphasizes the fact that the task 
should be so difficult, that only first-class men can do 
it in standard time, and if care is not taken, the incentive 
may not be great enough to induce the average man to 
cooperate in increasing output. The Taylor system is 
especially adapted where the same kind of task is re- 
peated day after day. Even here, if the task is made 
too difficult, so that the proper encouragement is not 
given, it is likely to be an absolute failure. The prin- 
ciple should be followed that the rate should 
be such as will allow an increase in wages of Proper en- 
from 30 to 60 per cent to all who make stand- men^shouid 
ard time, and this should be possible to the be given, 
average trained man in a plant. If these pre- 
cautions are not taken, the chances of success are slight. 
To the impartial observer, it appears that the Gantt 
system will give all the desired results of the Taylor, 
will not meet with the same opposition, and will give 
all necessary incentives for increased efforts. The 
Gantt and Halsey systems have met with greater favor 
with employees and will continue to increase in favor. 

The task idea with the bonus omitted has been adapted 
with success for day work. The amount of work which 
can be performed by the average man under existing con- 



352 ECONOMICS OF EFFICIENCY 

ditions is set as the task, and as soon as the task is 
completed the worker is allowed to go. If the task is not 
Task idea finished at quitting time, those who have not 
in day done SO are not allowed to go until it is. The 

work. i^Qgg Qj, superintendent is held responsible 

for quahty, and frequent inspection is made to see that 
uniform quality of work is obtained. 

The last of the wage systems to be considered is the 
Emerson efficiency system. It was devised by Mr. 
Emerson Emerson, the well-known engineer and effi- 
efficiency ciency expert. Machines, tools, and factory 
system. conditions are standardized and put in the 
best possible condition. As with the Gantt and Taylor 
systems, standard times and motions for different tasks 
_, . ., are determined by scientific investigation. 

Employees receive instruction cards, giving 
instructions as to best methods, tools, and the time 
the work should take. The standard time is ascertained 
and is the time which the average trained man takes to 
perform the task. This point should be emphasized, 
because if it were the best man of his class, few would 
reach standard time, and the motive for extra effort 

would be lost. When a man does the work in 
scheme Standard time, his bonus is 20 per cent, but 

the bonus starts when the work is performed 
in two thirds standard time. From two thirds standard 
to standard time, there is a rising scale until men be- 
come 100 per cent efficient, or do the work in standard 
time, when the bonus becomes 20 per cent. If a worker 
does the work in still less than standard time, he gets 
the bonus of 20 per cent plus the value of the time 
saved at the standard rate. 

The practice is not to compute the bonus unit by unit 
of work, but on the sum of the work done during a bonus 
period, usually a month. Daily records are kept of each 



SCIENTIFIC PIECE-RATE SYSTEMS 353 

man's performance. Each job or unit of work has stand- 
ard time. The sum of the standard hours' work is found 
by adding the standard times for all jobs or 
units of work performed. The sum of the operation! 
actual hours of work is known. By the com- 
parison of the actual time with the standard, the effi- 
ciency percentage is ascertained. Suppose a man works 
twenty-six days of eight hours each, or two hundred 
and eight hours in a month, at a wage of forty cents per 
hour. The time wage for the month is $83.20. By 
adding the standard times of the units of work, it is 
found that this worker performs one hundred and eighty 
hours of standard work. His efhciency is ^ff of 100, 
or 86.5 per cent. There is a prepared table of percent- 
ages for bonuses, from performances in 66f per cent of 
standard time to 100 per cent. By looking over the 
bonus table, this percentage gives a bonus of 7 per cent. 
Therefore the bonus is 7 per cent of $83.20, or $5.82. If 
work is found defective, has to be done over and the 
fault lies with the worker, standard time is counted 
but once, and the efficiency of the man as well as that 
of the foreman diminishes. Foremen and Foremen 
bosses also receive bonuses. The average receive 
efficiency of his men gives the efficiency per t)°'^"ses. 
cent of the boss. By comparison with the table of 
bonuses, the amount of the bonus is easily ascertained. 

The Emerson system is used for ordinary piece work 
and for job work. Where the work consists in turning 
out Hke pieces of goods, it is simpler than in 
job work. Standard time is ascertained, and introduce a 
one set of instructions is given to each man, cut in 
and he is to follow instructions. Workers are ^^^^'^^ 
instructed in best methods until they form 
habits of work. Sometimes inducements are given to 
workers who turn out 100 per cent efficient work to 



354 ECONOMICS OF EFFICIENCY 

make suggestions for improvements. These are studied 
by experts in charge of standard time, and if a sugges- 
tion is accepted, a reward is given. If by new methods, 
devices, or machinery, standard time is reduced, before 
it is done, the workers are consulted and shown that by 
instruction in the new methods they are able to perform 
the task with the same effort and turn out the same 
amount of work as before, but in shorter time. Allow- 
ance is made for instruction, and if properly explained, 
and with fairness and justice on the part of the em- 
ployer, the average worker will not object to a cut 
in standard time when it is shown that he is not the 
loser. New instructions are given, these are followed 
in place of the old, and workers are carefully instructed 
in their use. The efficiency and bonus percentages do 
not change. 

In the case of job work, each job is carefully analyzed 
and planned before it is given to the workers. The 
How it experts in charge decide upon best methods, 

works with machines, and tools to use, and these as well as 
30b work. routeing are given on instruction cards. The 
standard times for the jobs are found by experts and 
given to the workers. The management insists that 
instructions are followed in all cases, and it remains for 
the management to keep the plant always equipped 
with standard machines, tools, and equipment. 

As in previous cases, the quantity of output should 
not interfere with, or impair the health of the worker. 
Prerequi- '^^^ worker should be considered in fijdng 
sites in the Standard time, and it should not be made 

operating for the most efficient man in a class, but for 
sys em. ^-^^ average efficient trained man. If too high, 
the purpose of the system is lost, and antagonism in 
place of cooperation is obtained. With proper fixing 
of standard time, a liberal bonus, and the management 



SCIENTIFIC PIECE-RATE SYSTEMS 355 

fulfilling its part in doing everything to assist the worker 
in increasing output, the system should prove satisfactory 
with ordinary piece or job work. 

With all wage systems, where increased pay follows 
increased efforts, extreme precaution should be taken 
by the employer to see that quality is not im- 
paired. Provision should be made in every and^quaiity. 
case for proper inspection, and it should not be 
left to the workers themselves. Quality is an absolute 
necessity, and no system of wages should be allowed to 
interfere with turning out a product of the highest quahty 
and grade. 

The wage problem concerns two parties, the employer 
and the employee. Efficiency demands the harmonious 
cooperation of both for the success of the importance 
business enterprise. One requisite for this of a satis- 
cooperation is the satisfactory solution of factory 
the wage problem. This demands more than ^^^^' 
the paying of wages or giving a share in the profits. 
The question is not so much the amount paid, but 
whether or not the wage paid is a fair and just one. 
Efiiciency is impossible without satisfaction with wages 
paid. The determination of the method of payment 
and of the amount paid demands dehberation, tact, 
and liberality on the part of the employers, and judg- 
ment and reasonableness on the part of employees. 

Many plants have several systems of payment. The 
character of the work and of the employees should be 
specially studied. A system of payment f^. . , 
should be adopted which will give the greatest ^age sys- 
satisfaction and bring about the heartiest tem de- 
cooperation on the part of the working force, p^^^^s upon 

^ K . T r 1 conditions. 

in one factory, one kmd of payment may be 
best, and in another, another. It remains for the man- 
agement to make a special study of conditions and adopt 



356 ECONOMICS OF EFFICIENCY 

that which will be just, and give satisfaction. The 
successful solution of the wage problem is so important 
in efhciency that an employer cannot afford to experi- 
ment, and should be cautious in determining the system 
of wage payment, the task, the time, and the remunera- 
tion, each of which should be based on knowledge and 
not on guesswork. The day of guesswork is past and 
that of knowledge is at hand. Every employer should 
learn the importance of knowledge and base the solution 
of his wage problem upon it. 

QUESTIONS 

1. What is the Halsey premium plan of wage payment ? Give 
advantages and disadvantages. 

2. What is the Rowan system? How does it operate? 

3. Compare the Halsey scheme with the Rowan plan. 

4. What is the Gantt bonus system ? How does it operate ? 

5. What precautions should be taken in the introduction of the 
Gantt bonus system ? 

6. What are the advantages and disadvantages of the Gantt 
system ? 

7. How is the bonus given to foremen? 

8. What part should employees take in fixing task, time, and 
rate? 

9. What is the differential piece-rate system? Give its 
characteristics. 

10. Compare the bonus system with the differential. 

11. What are the advantages and disadvantages of the differ- 
ential system ? 

12. What precautions should be taken in the installation of the 
differential system in the treatment of labor? 

13. Show how the task idea may be applied to day work. 

14. What is the Emerson efficiency system ? 

15. Compare the Emerson system with that of Taylor and that 
of Gantt. 



SCIENTIFIC PIECE-RATE SYSTEMS 357 

REFERENCES 

Books 

S. H. Bunnell, "Cost Keeping for Manufacturing Plants," 
Ch. VIII ; C. U. Carpenter, " Profit-Making in Shop and Factory 
Management," Ch. XI; J. R. Commons, "Trade Unionism and 
Labor Problems," Ch. XI ; Dartmouth College Conference on 
Scientific Management, pp. 60-83; H. Diemer, "Factory Organ- 
ization and Administration," Chs. XXIII, XXIV; J. C. Duncan, 
"The Principles of Industrial Management," Ch. XV; H. Emer- 
son, "Efficiency," Ch. X; W. D. Ennis, "Works Management," 
Ch. IV ; H. A. Evans, " Cost Keeping and Scientific Management," 
Ch. VIII; H. L. Gantt, "Work, Wages, and Profits," Ch. VI; 
L. M. Gilbreth, "The Psychology of Management," Ch. IX; 
C. B. Going, "Principles of Industrial Engineering," Chs. VII, 
VIII; D. S. Kimball, "Principles of Industrial Organization," 
Ch. XI; J. L. Nicholson, "Cost Accounting, Theory and Prac- 
tice," Ch. VI; J. L. Nicholson, "Nicholson on Factory Organiza- 
tion and Costs," Ch. II; The System Company, "How Scientific 
Management is Applied," Chs. IX, X. 

Articles 

C. B. Auel, "A Review of Existing Wage Systems," American 
Machinist, Vol. 36, pp. 945-950; K. Banning, "More Work and 
Fewer Mistakes," System, Vol. 24, pp. 390-397 ; C. G. Barth, 
" Premium Systems," Iron Age, Vol. 85, pp. 1068-1070 ; C. Bender, 
" Systems of Wages and their Influence on Efficiency," Engineering 
Magazine, Vol. 36, pp. 498-512; C. Bender, "Halsey Premium 
Plan and the Rowan System," Engineering Magazine, Vol. 36, 
pp. 501-505 ; S. H. Bunnell, "Right Principles in Works Manage- 
ment," Iron Age, Vol. 87, pp. 1084-1085 ; A. H. Church, " Premium 
and Piece Work," Engineering Magazine, Vol. 46, pp. 7-18 ; H. 
Diemer, "Bonus and Premium System," Engineering Magazine, 
Vol. 29, pp. 719-730; H. Emerson, "Efficiency Reward," Engi- 
neering Magazine, Vol. 41, pp. 632-640 ; H. L. Gantt, "The Bonus 
System of Rewarding Labor," Review of Reviews, Vol. 26, pp. 326- 
328; H. L. Gantt, "The Task and Bonus System," American 
Machinist, Vol. 35, pp. 920-921 ; H. L. Gantt, "Compensation of 
Workmen and Efficiency of Operation," Engineering Magazine, 
Vol. 38, pp. 813-823 ; Vol. 39, pp. 17-23 ; H. L. Gantt, "The Task 
and a Day's Work," Industrial Engineering, Vol. 10, pp. 363-368 ; 



3S8 ECONOMICS OF EFFICIENCY 

H. L. Gantt, "Task Work the Basis of Proper Management," 
Southern Machinery, Vol. 27, pp. 44-48 ; H. L. Gantt, "Practical 
Application of Scientific Management," Engineering Magazine, 
Vol. 41, pp. 1-22 ; H. L. Gantt, "Bonus System of Wages," Engi- 
neering Magazine, Vol. 35, pp. 698-701; F. B. Gilbreth, "The 
Making and Use of Instruction Cards," Industrial Engineering, 
Vol. II, pp. 380-390; C. B. Going, "The Efficiency of Labor," 
Review of Reviews, Vol. 46, pp. 329-338; F. A. Halsey, "The 
Premium Plan of Paying Labor," American Society of Mechanical 
Engineers, Transactions, Vol. 12, pp. 755-780; J. Nelson, "Bonus 
and Rating for Works Executives," Iron Age, Vol. 91, pp. 1159- 
1162; F. A. Parkhurst, "Piece Work, Premium, Bonus, Differen- 
tial Rate and Differential Bonus Systems of Wage Payment," 
Industrial Engineering, Vol. 10, pp. 337-345; E. H. Schell, "A 
Simple Piece Rate System," American Machinist, Vol. 39, pp. 765- 
768; H. F. Searle, "The Premium System for the Payment of 
Wages," Journal of Accountancy, Vol. 9, pp. 321-339; S. E, 
Thompson, "Taylor Differential Piece Rate System," Engineering 
Magazine, Vol. 20, pp. 617-630. 



CHAPTER XVI 

Organized Labor and Efficiency Methods 

A trade union, as defined by Mr. John Mitchell, is 
an association of workmen who have agreed among them- 
selves not to bargain individually with their Trade 
employer or employers, but to agree to the union, its 
terms of a collective or joint contract between ™^^^°g- 
the employer and the union. Employees as well as 
society in general have benefited as a result of trade 
unions. No one can deny that unions have been pro- 
ductive of an immense amount of good, but unions have 
not always been just and right in the wielding of their 
power. Unscrupulous leaders have often 
gained control, and wielded the power of lousleadTrs. 
unionism for personal aggrandizement or for 
revenge for fancied wrongs committed by employers. 
Trade unions should learn to avoid the unscrupulous, 
narrow-minded leaders, and trust their power in the 
hands of leaders of sound judgment only. If unions use 
precautions so that leadership is intrusted in the hands 
of men of character, they will gain far more in the end, 
and it will be a great advancement in bringing about 
a better understanding between employers and em- 
ployees, and a reahzation of the fact that workers should 
cooperate and unite their interests with those of their 
employers, and not be antagonistic. All the 
demands of unions should be fair and just. unfust.^*°° 
Unions may be guilty of exploitation just the 
same as employers, and exploitation by either is unjust 
,and should be avoided. Dealings between unions and 

359 



36o ECONOMICS OF EFFICIENCY 

employers should be reciprocally based upon fairness and 
justice. 

The industrial progress made in the past has been 
through the ehmination of work and not by making it. 
The same will be true of future industrial 
depends growth. Progress demands the constant in- 
uponthe vention of new and improved means and 
of^wOTk^"^ methods of production, and the accompany- 
ing saving of labor. The great industrial 
progress of the past century was directly due to the 
invention of labor-saving machines. The period of in- 
vention which gave to the world many labor-saving 
machines, and so completely revolutionized the in- 
dustrial system, is known in history as the Industrial 
Revolution. We are in the dawn of a second industrial 
revolution which is also based upon labor-saving devices. 
The focus of attention is upon the human element in 
industry and not, as in the previous case, upon the me- 
chanical. The aim in this labor-saving movement is 
to so direct human energy that the best possible results 
are obtained from the energy expended. The changes 
which will result from the saving of labor through better 
direction will be as important upon our industrial system 
as the previous era of labor-saving machines. The 
first industrial revolution proved very beneficial to 
society in general, and the second will eventually prove 
as beneficial as the former. 

The average worker is more or less suspicious of his 
employer, and this has been true since man began to 
Employees work for man. A worker has a feeling that 
suspicious his employer will take every opportunity to 
of em- increase his profits to the disadvantage of the 

poyers. worker. Sad to relate, history proves to us 
that during the eighteenth and nineteenth centuries, 
the worker was justified in being suspicious of every 



ORGANIZED LABOR AND EFFICIENCY 361 

innovation introduced by his employer. Employers 
as a whole are responsible for instilKng into employees 
this feeling of suspicion of their actions. It is not the 
fault of the worker that he is against anything that is 
unwisely or thoughtlessly sprung upon him. The first 
thought is that it is for further exploitation, and when 
history proves that this is usually true, can 
you blame him? It may be said that even 
to-day, the wage earner is usually skeptical toward any 
new proposal and suspicious of any innovation. This 
attitude is always present with every laboring force, 
and is one which should be considered in the introduction 
of any change which affects workers. Failure is fre- 
quently due to the lack of its reahzation, and if not fail- 
ure, considerable hindrance is put in the way of the 
smooth introduction of a change. 

The attitude of suspicion and of doubt of the intention 
of the employer should first of all be changed to one of 
confidence and the belief that if a change is Feeling of 
made, it is not for the exploitation of labor, confidence 
but for its upHfting in one way or another, inem- 
This can be acquired only, in any laboring ^ °^^^' 
force, by being open, frank, and just in dealing with 
labor, by taking labor into confidence in the case of a 
change, and by carefully explaining the reasons 
for the change and its effect upon labor. Such qu^^d^ 
has not been the practice of employers in the 
past, and the result has been, in the introduction of 
changes, resistance, opposition, and even bitter struggle, 
often resulting in failure. Efficiency demands protection 
of labor and the abohtion of exploitation in every form. 
It stands for fairness and justice in dealing with labor, 
and requires the taking of labor into confidence in all 
deaHngs of the management with labor. The realization 
of this is absolutely necessary to change the long-rooted 



362 ECONOMICS OF EFFICIENCY 

attitude of suspicion into one of confidence, which is 
essential and necessary to obtain the cooperation of 
the laboring force, and an absolute essential for the 
successful introduction of efficiency methods. 

For a century after the introduction of the factory 
system, whatever tended to increase output met with 
Opposition Hiore or less strenuous opposition from the 
to new workers. Workers invariably believed that 

machines. ^-^q benefits of improved machinery accrued 
to the employer, and not to the employee. During 
the last quarter of the nineteenth century, many union- 
ists bitterly opposed the introduction of machinery, 
and refused to allow union men to operate machines. 
Coopers, iron workers, stonecutters, plumbers, and 
cigar makers followed this policy. During recent 
years, organized labor has gradually been forced to 
recognize the fact that the introduction of labor-saving 
machines is necessary for industrial progress, and 
that labor benefits thereby. A different attitude to- 
ward the introduction of improved machinery exists 
to-day from that which existed even a decade ago, 
because organized labor does not oppose generally 
the introduction of new labor-saving machines, but 
welcomes such changes. In England, the Lancashire 
unions encourage improvements in cotton factories, 
knowing that upon the prompt adoption of them de- 
pends the very Hfe of the industry in which they are 
engaged. 

Laborers should realize that the present supply of 
useful things is possible only with machinery, and with- 
Effects of ^^^ ^^' ^^^y would not be enjoying their 
new ma- present standard of living. They should also 
chines on know that it is only by more and better ma- 
chinery that the commodities now enjoyed 
can be increased and cheapened so as to give them 



ORGANIZED LABOR AND EFFICIENCY 363 

greater comforts. From the point of consumption, a 
greater blessing comes from increased output. 

Many workers doubt if it would really benefit the 
working people to turn out a larger output than at 
present, and still believe that an increased increased 
output will throw men out of work. History output 
shows that increase in output in any trade beneficial 

1 ij.« i_* 11 to labor. 

always results m more men being employed, 
and usually in an increase in wages. The cheapening of 
any article in common use almost immediately results in 
an increased demand for that article. Take the case of 
shoes. The use of intricate labor-saving machines for 
doing every element of the work which was concrete 
formerly done by hand has resulted in the case of 
making of shoes at a much less cost than they ^^°®^- 
were formerly made. As a result, shoes have greatly 
decreased in price, and have become so cheap that now 
almost every man, woman, and child in the working 
classes buys one or two pairs of shoes a year and wears 
them all the time, whereas formerly each worker could 
not afford more than one pair of shoes a year for himself, 
and his wife and children were forced to go barefooted 
six months of the year. The demand for shoes has so 
increased that there are more workers engaged in the 
shoe industry to-day than ever before. As a result of 
the increased output coming from the use of more im- 
proved machinery and better methods, workers are en- 
joying comforts of living which would have been impos- 
sible without them, and are not only enjoying higher 
wages but more of their number are employed than would 
have been if such improvements had not taken place. 
Yet even to-day, many unionists and workers may be 
found who still believe, as their fathers before them, that 
it is against their best interests for each man to turn out 
each day as much as possible. 



364 ECONOMICS OF EFFICIENCY 

The average worker does not realize that the more 
labor produces, the more it has. The greater the aver- 
Wages de- ^^^ output of the average individual in a 
pend on particular trade, the greater will be the aver- 
output. g^gg ^a^gg earned in that trade. The worker 

contributes a certain share in production, and if he gets 
more than that share, he is exploiting some one else, but 
if he is not getting that share, he is being exploited. The 
wage which he receives is paid from the share he con- 
tributes. It stands to reason that the greater the share 
which the laborer produces, the greater will be his wage. 
This is invariably the case, as the history of wages proves. 
The greatest blessing to the laborer in his struggle for 
increased wages is to be able to increase his share of 
production. Every worker should reaHze that every 
machine, method, and device to increase the product of 
labor is a blessing to labor. 

The very same thing is true of the new efficiency move- 
ment which has proved true in the case of labor-saving 
Efficiency niachines. Efficiency increases output with the 
consists of same amount of energy previously expended 
labor-saving ^nd the same time occupied. It allows the 
worker to increase his share in production, and 
consequently assures him a higher wage. Efficiency will 
bring to the door of the worker many comforts which 
he does not now enjoy. Workers should reahze that 
efficiency methods are not subtle schemes on the part of 
employers to advance their interests at their expense. 
It took nearly a century and a half for workers to realize 
that improved machinery was for their good. The 
realization that increased output and improved machines 
work for improved standards of living and higher wages 
will soon convince workers that efficiency methods will 
work for the same end. 

One of the greatest fallacies believed by many union- 



ORGANIZED LABOR AND EFFICIENCY 365 

ists is that restricted output would benefit the working 
classes. This fallacy is the result of the erroneous 
behef that there is just so much work in the Effect of 
world, and the less one does the more there restricted 
will be for others. It was long held as a output on 
unionist doctrine that if a worker worked too * 
fast or too long hours, it would take employment away 
from others. Enlightened unionists to-day realize the 
fallacy of this doctrine, but it is still believed by many. 
In many cities, the plumbers' unions forbid the use of 
the bicycle in going from job to job because 
one can go more quickly than on the cars or restriction 
by walking. A few years ago, the carpenters' 
union of Chicago declared that any member found 
guilty of excessive work and rushing on a job would be 
subject to a fine of five dollars. It is a common practice 
of union men even to-day to make it unpleasant for any 
member found hastening with his work or continuing 
work after quitting time. It has been a hard struggle to 
convince unionists that restricting output works to their 
disadvantage rather than to their benefit. This short- 
sighted pohcy must be blotted out, and unionists should 
be made to reahze that all restrictions upon output, 
whether due to lack of sufficient incentive or other 
causes, inevitably lead to a reward commensurate with 
the output, and that in every trade wages received be- 
come ultimately proportionate to output. 

During the nineteenth century, unions usually pur- 
sued the policy of increased wages and curtailed produc- 
tion, believing that it would improve the changed 
condition of labor. Little did they know that views of 
there is a close relation between wages and ^°^^^rs. 
output. Workers in general were inspired to curtail 
output by the widespread delusion, that there will not 
be work for all if all work to their utmost. Beginning 



366 ECONOMICS OF EFFICIENCY 

with this century, the fallacy of restriction of output 
began to dawn upon the more enlightened unionists, and 
their influence upon the laboring force in general has 
been to impress it upon an increasing number of workers. 
Every day the fallacy is being brought home to a greater 
number of workers, and the time is not far distant when 
the working force in general will hold up to ridicule what 
for many years was held as an absolute necessity in 
increasing wages and improving their condition. 

All who believe in the policy of restriction will oppose 
the efficiency movement. Efficiency demands the very 
Efficiency opposite, the greatest possible increase in out- 
and restric- put without impairing the health of workers, 
tionof The universal acceptance of the old belief of 

ou pu . restriction of output, as a delusion detrimental 

to the interests of workers, will make workers the more 
easily realize that increased output coming from the 
various efficiency methods is for their benefit. This will 
break down the opposition which developed so strongly 
against the efficiency movement in its incipient stage. 
The fallacy of the restriction of output idea must be 
made plain to all workers because it is a strong factor 
working against the acceptance of efficiency methods as 
beneficial to workers. Restriction of output is antagonis- 
tic to efficiency. Efficiency, as a result of the rapid con- 
version of the workers from the restriction of output 
delusion, will have far less opposition to the introduction 
of its methods than was experienced in the introduction 
of labor-saving machines. 

Energy, skill, and dexterity are the worker's capital 
Efficiency ^^*^ should be adequately protected by law. 
and protec- Organized labor declares that under highly 
tion of speciaHzed conditions workers are frequently 

compelled to work at a speed which impairs 
their health and their efficiency. A prominent defender 



ORGANIZED LABOR AND EFFICIENCY 367 

of unionism declares that no industry has a right to more 
than that amount of the worker's energy which can 
normally be replaced by the food and the rest allowed 
him. Such an attitude of unions should be supported 
by every one. Speeding, overdriving, and sweating, as 
they impair health and efficiency, should be abolished. 
Speeding machinery at the expense of sapping the vitality 
of workers is one of the greatest crimes on humanity. 
Efficiency demands the conservation of the human ele- 
ment. It demands health and every possible precaution 
and care on the part of the management to maintain 
working conditions most conducive to health, and to 
take the very best care of workers. It further demands 
a careful study of the work to be performed, and of the 
workers so that workers will not work beyond their 
strength. 

Efficiency stands for a pace which may be maintained 
day after day without impairing the health or the 
vitality of the workers. It is not obtained Methods of 
by driving or by speeding, but through the protecting 
careful directing of energy, and having the '^°^^^^^- 
worker perform his task with the best methods, amidst 
the best environments, and with the best conditions pos- 
sible. It is not efficient to speed up temporarily, and 
overstrain, overfatigue and undermine the health of 
workers, but it is efficient to scientifically investigate con- 
ditions and workers, and to guide their energy so that 
the greatest possible results can be obtained from the 
amount of energy spent, but at the same time, the fact 
is borne in mind that the pace and the work should be 
such that workers can maintain their speed day after day 
without impairing their health. Efficiency prolongs the 
productive period of a man's life, and makes his produc- 
tive period more productive by protecting him against 
fatigue, and everything which impairs his health. The 



368 ECONOMICS OF EFFICIENCY 

efficiency movement from the standpoint of health is one 
of the greatest blessings which has befallen labor. The 
charges that efficiency stands for speeding, sweating, and 
overdriving are absolutely false, and are made by those 
who have an entirely wrong conception of what efficiency 
stands for. There never has been an industrial move- 
ment which promises so much for labor in general, organ- 
ized or unorganized, as the efficiency movement. 

The charge has been made that the efficiency move- 
ment means greater specialization of labor, and that this 
. will make work more monotonous, demoraHze 

an/in^*^^ the laboring class, and produce a class of 
teiiectuai workers of lower intelhgence. Efficiency on 
develop- ^]^g other hand demands a high degree of in- 
telligence, provides for the careful training of 
workers, and chooses occupations for workers for which 
they are by nature best fitted. Efficiency demands care- 
ful training of the inefficient to make them efficient. It 
recognizes the need of an intellectual laboring force, and 
the providing of careful training and instruction in order 
to give skill and dexterity. Not only that, but it de- 
mands various ways of making the laborers more intel- 
lectual as free Hbraries, free classes, and lectures, and in 
so doing, gives the laborer an opportunity to extend his 
knowledge to a broader sphere so that it may be pos- 
sible for him to make the most out of his occupation. 
Efficiency stands for the uplifting of labor, for making the 
inefficient efficient, and for giving the industrial system 
of to-day better trained, more intellectual, and better 
skilled workers. 

Some see in the efficiency movement a cause of alarm, 
claiming that it casts upon society an ever increasing 
army of unemployed. The inefficient and the old, they 
claim, will be dismissed without compunction, and this 
will entail an increasing burden upon society and cause 



ORGANIZED LABOR AND EFFICIENCY 369 

much suffering to the discharged workers. As already 
stated, efficiency endeavors to make efficient workers out 
of the inefficient through careful training. It ^^ . 

^ . . , P, . EflBciency 

recognizes permanency m service which is and the 
quite the opposite of a temporary speeding up, care of the 
sapping the vitahty of workers, and then dis- ^^Q^j.^gj.g 
missal. Efficiency demands the protection 
and care of the sick, and recognizes the fact that workers 
who through their lives have assisted in building up a 
business have a right to be protected when old age over- 
takes them. Efficiency strongly advocates sick benefits, 
and pensions to those who grow old through . 
giving their best service to a business organi- 
zation. All business men who believe in efficiency advo- 
cate that those who have spent their lives in building up 
a business should be cared for. Pension schemes have 
during the past few years made wonderful growth, and 
their growth will be still greater with the greater spread 
and more universal advance of efficiency methods. For 
safeguarding against inefficiency, and for the provision of 
protection for old age, the efficiency movement promises 
a great blessing to the laboring class as a whole. 

Many unionists believe that the piece-rate system of 
rewarding labor is some arrangement to squeeze the 
worker into making him work for less wages, q ^j^j ^ 
Unionists generally consider piece rate as an of unions 
evil to be abolished whenever possible. Never- *» *^® P^^ce 
theless, many successful unions operate by 
piece rate. There is a growing tendency to view piece 
rate with somewhat greater favor, as a proper system 
for rewarding labor according to its efficiency. The 
present widespread distrust of piece rate is due to the 
practices of employers in the past. Experi- 
ence has taught workers that when wages ex- 
ceed a certain amount, their piece rates are cut, so that 



370 ECONOMICS OF EFFICIENCY 

they earn no more for working hard than they do for 
taking it easy. This is not the fault of the piece-rate 
system, but ignorance in the operation of the system. 
Rates are fixed by guess and no attempt made to find 
out what would be just, and no knowledge of what would 
be the increased output as a result of the introduction of 
the piece-rate system. With such a haphazard method 
of introduction, readjustment and rate cutting results, 
and trouble arises. The system should not be blamed 
but the ignorance of employers. 

Efficiency methods demand that wherever possible 
the laborer should be paid according to piece rate, but 
Proper instead of guess in ascertaining the task and 

piece rates the rate, scientific investigation is made, and 
benefit as we havc seen, a just and fair rate is ascer- 

tained. Knowledge takes the place of guess. 
Labor is not allowed to overtax its strength in work. 
All possible means are taken to find out the proper task 
and its fair and just remuneration. What is fairer than 
the rewarding of labor wherever possible according to 
its efficiency, and with a reward that is fair and just? 
With a bonus or premium, extreme care is taken to 
guarantee labor a fair and just reward, and, to the effi- 
cient, a greater reward based upon productivity. It 
matters not the scheme of payment for wages, the 
worker himself is carefully studied, and every precaution 
taken to conserve his health and strength. Increased 
wages are not the result of overtaxed, overtired, and 
overstrained muscles. With efficiency methods, good 
wages can be earned by the average worker without 
strain, overfatigue, and impairing health. Opposition 
to the piece-rate system of the elficiency movement has 
been chiefly due to a misconception of what efficiency 
stands for. As soon as workers know the demands of 
efficiency, and its precautions to guarantee labor its 



ORGANIZED LABOR AND EFFICIENCY 371 

fair and just remuneration, they will realize that the 
efficiency movement is ever protecting and looking out 
for their interests. 

Mr. Mitchell states the view of organized labor when 
he declares that the destruction of the working men is 
the individual bargain, and that their salva- Forms of 
tion is the joint, united, or collective bargain, wage 
There are two forms of wage bargaining, bargaining, 
individual and collective. If each worker makes a 
separate and independent bargain with his employer, 
the method is one of individual bargaining. ^ _,. .^ , 

_. , r 1 1 Individual. 

If employees or a group 01 employees send 
representatives to bargain with the employer, and an 
agreement is reached which fixes the standard wage for 
each group or for each class of work, the 
method is collective bargaining. The ability 
to require collective bargaining is the chief aim of union- 
ism, and is a right which every union man is very jealous 
in demanding and in protecting. 

Collective bargaining is essential to guard the in- 
terests of labor ; few to-day advocate its overthrow and 
the return to individual bargaining. It is an 
integral part of our industrial system, and its doe"not^ 
operation is necessary and essential for indus- abolish 
trial growth and progress. Nearly all abuses ^o^^^tive 
and unjust conditions affecting workers have 
arisen where workers have not enjoyed this right for 
determining wages and conditions under which work is 
carried on. The efficiency movement in its demands for 
fairness and justice in the treatment of labor does not 
advocate the abolition of collective bargaining, but its 
continuance as a further guarantee for the protection of 
labor. A misconception of efficiency exists among em- 
ployers as well as among employees. Some employers 
have declared that the efficiency movement would 



372 ECONOMICS OF EFFICIENCY 

abolish collective bargaining, would restore individual 
bargaining in all classes of labor and would at the same 
time gradually cause the disappearance of unions. 
Such employers do not know of what the}^ are talking. 
The efficiency movement stands for the cooperation of 
labor working through unions and collective bargaining. 
The unions should not be controlled by selfish narrow- 
minded leaders but by broad-minded, fair, and just men 
who work not for selfish motives but for the 
leaders. ^^^^ ^^^ j'^^^ treatment of labor in their par- 
ticular trades. Unionism has suffered more 
from the abuse of power by unprincipled, selfish, and 
ignorant leaders than from any other cause. Unionism, 
to accomplish the most good, has no place for such leaders, 
nor has the efficiency movement. 

Unions in general have opposed the premium and the 
bonus systems of paying labor, and there is no reason 
for such opposition. The task, its method of 
No basis performance, the time and the remuneration 
tion*of'°^*' allowed are not fixed except with the coopera- 
unions to tion of the laboring force affected. Both em- 
premium ployers and employees work in harmony in 
systems. their effort to establish a fair task, just time, 
and fair remuneration. The premium or the 
bonus is fixed with the assistance of labor through its 
representatives. It is short-sightedness on the part of 
unions to oppose either scheme for remunerating effi- 
ciency because it is just that greater efficiency should be 
rewarded, and the premium or the bonus is a fair way of 
remuneration. Unions should bear in mind that the 
premium or the bonus is not earned at the expense of 
overstrain, fatigue, or impaired health. If this were 
so, it would increase inefficiency and defeat the very 
purpose of both premium and bonus schemes of rewarding 
labor. Success and the greatest benefit to labor come 



ORGANIZED LABOR AND EFFICIENCY 373 

through unions and collective bargaining, but are based 
on justice and fairness in dealing with employers. 
Fairness and justice between the two great classes should 
be reciprocal. Efficiency demands such reciprocal rela- 
tions, and only where such prevail, can cooperation and 
efficiency be found. 

Efficiency demands conditions of work most conducive 
to health and to continuity of service. Such conditions 
are ascertained by careful and expert investi- union (le- 
gation, and with the cooperation of labor. In mands 
the past and at present, unions base their based on 
demands in the case of wages, conditions of ^"®^^* 
work, and hours of work, upon guess. How much better 
it would be to follow the dictates of efficiency and base 
their demands upon knowledge. This recognition by 
unions would give us a new unionism accomplishing more 
for labor than the old, working in harmony with em- 
ployers for industrial progress, and would confer benefits 
upon labor and society in general. 

Mr. John Mitchell strikes a keynote when he declares 
that if the trade-union movement is permanently suc- 
cessful, it will be due to the compelling of 
constant invention of improved means and unionism 
methods of production, and the continual and effi- 
saving of labor, and that trade-unionism should "nta*^ o^sti 
make labor valuable, compel employers to save 
it wherever possible, and make the competition among 
workers one of efficiency. With this declaration of the 
aims of unionism coming from its most distinguished and 
ablest member, can organized labor consistently oppose 
the efficiency movement? The opposition to efficiency 
methods will continue for years to come, and will be due 
to ignorance on the part of workers of what efficiency 
really means and its demands on labor. Until unionists 
are educated as to what unionism stands for, serious 



374 ECONOMICS OF EFFICIENCY 

opposition will arise to efficiency methods. A great need 
is education in the principles of unionism, in what effi- 
ciency methods stand for, and in what way labor will be 
affected as a body. As soon as union men know what 
unionism stands for, and what the efficiency movement 
means, they will realize that to follow consistently the 
principles of unionism they cannot oppose the efficiency 
movement. 

There is urgent need of teaching employers what effi- 
ciency means and what it demands. Few employers 
T „ ,»„„» really know what efficiency demands of them 

Ignorance , r a i r i • • 

as to the and of employees. As a result of this igno- 
meaning of rance, many false views have been given as to 

ciency. ^-^^ effects of efficiency methods upon labor. 
Fallacious effects are stated, and cause antagonism to 
arise between employer and employee, as, for example, 
many employers have declared that efficiency stands for 
the abolition of collective bargaining. This fallacious 
notion has caused no end of opposition from organized 
labor. A number of employers have said that efficiency 
stands for the abolition of unionism, and this has aroused 
many of the unions to stand at almost open arms against 
efficiency methods. The teaching of the fundamental 
principles of efficiency is essential to employers as well as 
employees, and when the principles are understood, each 
will realize that when efficiency methods are properly 
carried out, they confer benefits upon both, and it will 
be to the interest and advantage of each to hasten their 
adoption in every plant and enterprise. 

The efficiency system is destined to become an in- 
tegral part of our industrial system in the future. Mis- 
takes will be made by employers in the installation of 
efficiency methods, and opposition will be made by mis- 
informed unionists. Knowledge must take the place of 
ignorance in the conducting of business enterprises, and 



ORGANIZED LABOR AND EFFICIENCY 375 

efficient methods of doing work will sooner or later dis- 
place inefficient methods. The change may be retarded, 
but the constant pressure of economic forces 
will finally break down all opposition. Men ^y^^tm an 
working for themselves do not object to integral 
methods which will make their work easier p^''^ °^ °^^ 

J J J.' AT 71- J industrial 

and more productive. Why do wage-earners system, 
oppose efficiency? Efficiency adds to wages, 
to the comfort of workers, protects their health, saves 
them from fatigue, and prolongs their years of productivity. 
The opposition which exists to-day is the result of lack 
of knowledge of the principles underlying the efficiency 
movement. The dissemination of these principles is 
what is badly needed to break down this opposition, and 
will change the opposition into a fervent support of 
efficiency methods. 

Efficiency is necessary for progress, and opposition to 
its methods is due to ignorance and suspicion rather 
than to observation of what efficiency will do. r>^„-.-„ 

A 1 J. r •^- 1 r Opposition 

A large amount of opposition also comes from to efficiency 
the remembrance of bitter experiences of the ^^^ t° 
past. Teaching the laboring classes the ^snorance. 
general principles of unionism and of efficiency will 
clear away much of the opposition because it will be 
shown that unionists should support efficiency if they 
support their own principles. There is no basis for any 
opposition of organized labor to efficiency methods ex- 
cept ignorance, bad economic theory, and the remem- 
brance of bitter experiences. Any system which lowers 
costs by eUminating unnecessary labor should be wel- 
comed and encouraged. It is inefficiency which retards 
industrial progress. The converting of inefficiency into 
efficiency benefits labor, employers, and society in gen- 
eral. Theodore Roosevelt once declared that we have 
no higher duty than to promote the efficiency of the 



376 ECONOMICS OF EFFICIENCY 

individual and that there is no surer road to the effi- 
ciency of the nation. 

QUESTIONS 

1 . What is a trade union ? 

2. Show how society is benefited by unions. 

3. What has brought about the present attitude of suspicion 
of many laboring men toward employers ? 

4. Account for the opposition of many unionists to new ma- 
chines and new methods of production. 

5. What is the fallacy of the restricted output theory ? 

6. Why are so many union people opposed to the piece-rate 
system ? How may this opposition be overcome ? 

7. Show how proper piece rates benefit labor. 

8. What are the different forms of wage bargaining ? Why do 
unions place so much importance on collective bargaining ? 

g. Show that efficiency does not abolish collective bargaining. 

10. Show that the aims of unionism and of efficiency are not 
antagonistic. 

11. Show that much of the opposition of unionism is due to 
selfishness of union leaders. 

12. What are the methods of protection of workers advocated 
in the efficiency movement ? 

13. What methods should be adopted by employers to gain the 
confidence of employees ? 

14. Show that progress depends upon the elimination of work. 

15. Show that increased output is beneficial to labor. 



REFERENCES 

Books 

C. L. Bolen, "Getting a Living," Ch. X; F. T. Carlton, "The 
History and Problems of Organized Labor," Ch. VI ; Clark and 
Wyatt, "Making Both Ends Meet," Ch. VII; J. R. Commons, 
"Labor and Administration," Chs. IX, X; F. A. Fetter, "The 
Principles of Economics," Ch. 27; H. L. Gantt, "Work, Wages, 
and Profits," Ch. Ill; J. Goldmark, "Fatigue and Efficiency," 
Ch. VII; A. T. Hadley, "Economics," Ch. XI; J. Mitchell, 
"Organized Labor"; E. R. A. Seligman, "Principles of Eco- 



ORGANIZED LABOR AND EFFICIENCY 377 

nomics," Ch. XXVII; F. W. Taylor, "Shop Management," pp. 
186-194. 

Articles 

L. D. Brandeis, "Organized Labor and Efficiency," Survey, 
Vol. 26, pp. 1 48-1 51; H. R. CaUaway, "Efficiency and the 
Worker," Engineering Magazine, Vol. 45, pp. 715-717; F. T. 
Carlton, "Scientific Management and the Wage Earner," Journal 
of Political Economy, Vol. 20, pp. 834-845 ; J. R. Commons, 
"Organized Labor's Attitude toward Industrial Efficiency," 
American Economic Review, Vol. i, pp. 463-472; T. N. Carver, 
"Machinery and the Laborers," Quarterly Journal of Economics, 
Vol. 22, pp. 210-232 ; H. B. Drury, "Organized Labor and Scien- 
tific Management," Industrial Engineering, Vol. 14, pp. 99-101, 
145-149 ; J. P. Frey, "The Relationship of Scientific Management 
to Labor," Journal of Political Economy, Vol. 21, pp. 400-411 ; 
H. Godfrey, "Attitude of Labor towards Scientific Management," 
Annals of American Academy of Political and Social Science, 
Vol. 44, pp. 59-73 ; J. Golden, "Industrial Peace from the Stand- 
point of a Trade Unionist," Annals of the American Academy of 
Political and Social Science, Vol. 44, pp. 141-144 ; J. Golden, 
"The Attitude of Organized Labor," Journal of Accountancy, 
Vol. 12, pp. 189-194 ; R. Hugins, " The Effect of Scientific Manage- 
ment on Wages," South Atlantic Quarterly, Vol. 13, pp. 51-68; 
A. S. Johnson, "The Effect of Labor-saving Devices upon Wages," 
Quarterly Journal of Economics, Vol. 20, pp. 86-109 j P- Klapper, 
"Organized Labor's Attitude toward Machinery," Journal of 
Accountancy, Vol. 10, pp. 321-333 ; "Labor Unions and Efficiency," 
Nation, Vol. 92, p. 334; H. T. Lewis, 'The Problem of the Effi- 
ciency of Labor," Popular Science Monthly, Vol. 82, pp. 153-162 ; 
J. Mitchell, "Economic Necessity of Trade Unionism," Atlantic 
Monthly, Vol. 113, pp. 161-170; W. B. Prescott, "Trade Unions 
and Industrial Education," National Education Association, 1910, 
pp. 265-273 ; C. B. Thompson, "The Relation of Scientific Man- 
agement to the Wage Problem," Journal of Political Economy, 
Vol. 21, pp. 630-642 ; H. White, "Machinery and Labor," Annals 
of American Academy of Political and Social Science, Vol. 20, 
pp. 223-231 ; A. P. Winston, "The Trade Union and the Superior 
Workman," Atlantic Monthly, Vol. 90, pp. 794-801. 



INDEX 



Accident prevention, efficiency and, 
254; divisions of, 255; spirit, 271; 
how attained, 271; museum, 273; 
necessary measures for, 280. 

Accidents, fatigue and, 188; classes of, 
252 ; losses from, 253 ; causes of, 255 ; 
ignorance and, 256 ; carelessness and, 
256; clothing and, 258; poor lighting 
and, 259; fires and, 260; slippery 
floors and, 261 ; alcohol and, 262 ; 
long hours and, 263 ; intense work 
and, 264 ; safeguards and, 265 ; man- 
agement and, 273. 

Adaptability, need of, 139. 

Advertising, purpose and aim of, 64 ; 
requisites for good, 64. 

Age limit, 119. 

Ailments, treating slight, 228. 

Aim of the book, 9. 

Air, effects of foul, 210; value of pure, 
210; circulation, 213; water in, 215; 
composition of, 287. 

Air conditioning, factors in, 211. 

Alcohol, effects on workers, 187; acci- 
dents and, 262. 

Antidotes to fatigue, 186. 

Apprentices, care in selection, 126, 141 ; 
imder old apprenticeship system, 
13s ; in corporation schools, 142. 

Apprenticeship system^, origin of, 134; 
characteristics of, 134 ; limitations of, 
134; abuses of, 134; crude form of 
training, 135 ; abolition of the old, 
136; a modified, 136. 

Artificial lighting, means of, 205 ; re- 
quirements for good, 206. 

Ashes, how to care for, 293. 

Athletics, promotion of, 245. 

Attendance, encouraging prompt, 80; 
causes for irregular, 80. 



Authority, clearly defined, 83. 
Automatic, fire alarms, 298 ; sprinklers, 

303. 
Average worker, methods of, 92. 

Baldwin Locomotive Company, 145, 
147. 

Banks, savings, purpose of, 246. 

Bargaining, collective, 371 ; individual, 
371- 

Bathing, facilities for, 239. 

Benefits, kinds of, 243 ; how to manage, 
243 ; new feature in, 243. 

Blackford, Dr. Katharine, 108. 

Brain, fatigue and the, 181. 

Buildings, design of, S4- 

Business, former methods of, 10; 
tendency of modern, 18; activity, 
aim of, 20; efficiency in, 29; goal in, 
29 ; scientific study of, 40 ; guess- 
work in, 89; principles imderlying, 
93 ; ruling force in, 199. 

Business enterprise, aim of, 37. 

Business management, lax methods in, 
10. 

Buying, waste in, 35; importance of 
quality in, 56; importance of, 63. 

Capability, ability to tell, 125. 
Capital, definition of, 23 ; kinds of, 23 ; 

advantages of, 23. 
Card record, for each worker, 127; 

advantages of, 127. 
Carelessness, efficiency and, 124; 

accidents and, 256. 
Changes, how to introduce, 34. 
Characteristics, promote efficiency, 

123; how to detect, 124. 
Chemical extinguishers, 306. 
Chemistry of fire, 287. 



379 



38o 



INDEX 



Child labor, efficiency and, 38; acci- 
dents and, 276. 

Cincinnati, University of, 149. 

Cleanliness, need of, 188; accidents 
and, 259. 

Clock, portable, 301 ; stationary, 302. 

Club house, 245. 

Clubs, kinds of, 246 ; work of, 246. 

Collective bargaining, meaning of, 321 ; 
aim in, 371; efficiency and, 371. 

Combustion, meaning of, 287; spon- 
taneous, 288. 

Compensation in accidents, 279. 

Competition, definition of, 20 ; business 
men and, 20; results of keen, 21; 
basis of successful, 21. 

Computed efficiencies, value of, 29. 

Confidence, in employer, 361 ; how ac- 
quired, 361. 

Conservation, of workers, 7; of health, 
201 ; of the eye, 206. 

Contentment, effect on output, 78. 

Contract system, 321, 337. 

Cooperation, definition of, 70; im- 
portance of, 70; how to gain, 100 

Coordination, definition of, 48 ; es- 
sentials for, 48. 

Corporation school, definition of, 140; 
methods of a, 140; instructors in a, 
141 ; period of apprenticeship in a, 
142 ; character of training in a, 144. 

Cost system, definition of, 51; im- 
portance of, 51 ; requisites for a, 52 ; 
advantages of a, 52. 

Credit, place in business, 65 ; requisites 
for granting, 65. 

Day's work, a reasonable, 92. 

Delaney, J. C, 257. 

Denominator, how to find, 28. 

Details, handling of, 49. 

Differential piece-rate sj^stem, requi- 
sites for the, 349 ; the rate in the, 
349 ; in operation, 350. 

Discipline, a necessity, 83 ; methods of 
enforcing, 84; fining and, 85. 

Dispensary, how conducted, 229. 

Dissipation, efficiency and, 83. 



Division of labor, definition of, 13; 
machinery and, 13. 

Draughts, dangers from, 216. 

Dress, standard, 258. 

Drifter, meaning of, 120; how to tell a, 
120. 

Drinking water, importance of, 234; 
sources of, 235 ; how supplied, 236. 

Driving, evils of, 75. 

Dust, kinds of, 216; effects of, 217; 
and sickness, 218; means of, pre- 
vention, 218; dangers in, 297. 

Eating, habits of, 172. 

Economist, importance of, 8. 

Educational system, efficiency and, 31. 

Educational work, kinds of, 244. 

Efficiency, the goal in business, 6; 
essence of, 7 ; a public need, 27 ; 
definition of, 28; how to ascertain, 
28 ; denominator in, 28 ; in business, 
29 ; purpose of, 29 ; railroads and, 30; 
in public administration, 30; and 
educational system, 31 ; applying, to 
work, 33 ; problem of, 37 ; and 
strenuousness, 37 ; and child labor, 38 ; 
benefits from, 39 ; knowledge and, 
39; system and, 48; coordination 
and, 48 ; demands of, 50 ; plant 
location and, 53 ; quality and, 57 ; 
hiring men and, 1 1 1 ; health and, 
116; nervous system and, 117; 
habits and, 119; carelessness and, 
124; training and, 156; fatigue and, 
178; intemperance and, 186; en- 
vironment and, 202; dust and, 216; 
restriction of output and, 366; in- 
tellectual development and, 368; 
collective bargaining and, 371. 

Efficiency movement, evolution of, 27; 
extent of, 27 ; definition of, 33 ; and 
intelligent workers, 39; and the 
management, 98. 

Efficient cycle, 183. 

Electric lighting, 205. 

Emergency hospital, 226. 

Emergency room, equipment of, 275. 

Emerson, H., 352. 



INDEX 



381 



Emerson efficiency system, 352 ; in 
operation, 353. 

Employers' liability, systems of, 278. 

Employment, barriers to, 118. 

Employment department, 115. 

Energy, waste of, 36 ; methods of con- 
serving, 194. 

Enthusiasm, 73. 

Environment, standard, 20; efEciency 
and, 202 ; returns for proper, 220. 

Exhaustion, causes of, 179. 

Experimenting with men, no. 

Exploitation, does not pay, 8; unjust, 

359- 
Eye, conservation of, 206 ; strain, 207 ; 
protection to the, 270 ; infections, 271. 

Factors in production, 22 ; careful 
study of, 24. 

Factory inspection, how made, 278. 

Factory system, definition of, 2 ; in- 
troduced new problems, 3. 

Fatigue, causes of, 178; effects of, 179; 
warning of, 180; and memory, 182; 
and stupidity, 182; and sleep, 183; 
nourishment and, 185; antidotes to, 
186 ; and intemperance, 187 ; and 
accidents, 188; and noise, 189; 
training and, 191 ; real and false, 191 ; 
imnecessary, 192 ; wastes from, 195. 

Favoritism, evils of, 71 ; and promotion, 
326. 

Fining, in disciplining, 85. 

Fire, losses from, 284 ; loss and insur- 
ance, 286; chemistry of, 287; causes 
of, 289 ; matches and, 292 ; smoking 
and, 292 ; controlling a, 298. 

Fire alarms, automatic, 298. 

Fire drill, importance of, 311. 

Fire escapes, precautions with, 309. 

Fire pail, 306. 

Fire patrol, 301. 

Fire prevention, preventing waste 
through, 284 ; divisions of, 287. 

Fireproof buildings, 308. 

Fire tanks, 306. 

Fire tower, 309. 

Fire walls, 310. 



First aid, to the injured, 274; jars, 275. 
Fisher, Irving, 195, 224. 
Fountain, sanitary, 236. 
Fumes, how to remove, 219. 

Gantt, H. L., 343, 344, 34S,_35i- 
Gantt bonus system, definition of, 343 ; 

standard time and, 344; task and, 

345; health and, 347. 
Gases, how to remove, 219. 
Gas jets, precautions with, 293. 
Gas lighting, 205 ; ill effects of, 2og. 
Gas stove, precautions with, 295. 
General Electric Company, 146. 
Glare, evils of, 208; how to prevent, 

208. 
Globes, purpose of, 208. 
Goggles, care in using, 270. 
Goods, moving, 60 ; system in shipping, 

60; packing, 61 ; routeing, 61. 
Grenades, 307. 

Habits, efficiency and, 119, 159; defi- 
nition of, 160; instincts and, 160; 
examples of, 163 ; results of proper, 
163 ; difficulties in formation of, 163 ; 
of industry, 165; proper, of work, 
171; proper, of living, 171; proper, 
of eating, 172; classes of, 173; old 
notion of, 173 ; tobacco, 175 ; tea and 
coffee, 175. 

Hadley, President, 20. 

Halsey, F. A., 340. 

Halsey premium wage system, meaning 
of, 340 ; how it operates, 340. 

Handling men, methods of, 75. 

Health, signs of, 117; factor in effi- 
ciency, 200; and profits, 200; con- 
servation of, 201 ; protection of, 224. 

Hearing, efficiency and, 117. 

Heating, methods of, 295. 

Hiring, importance of, 107 ; common 
practice in, 109; the right man, in ; 
guesswork and, 112; superintendent 
and, 112; essentials in, 112. 

Holding men, methods of, 76; impor- 
tance of, 1 10. 

Honesty, 123. 



382 



INDEX 



Human factor, long neglected, 5; 

study of, 11; accurate knowledge 

and, 12. 
Humidity, effects of, 214, 215. 

Ideas, search for new, 40. 
Ignorance, wastes and, 2g; and in- 
efficiency, 40; in business, 89; and 

environments, 221; accidents and, 

256. 
Ill health, effects of, 201. 
Illinois law, for air requirements, 213. 
Illumination, efficiency in, 203. 
Incentive, kinds of, 75. 
Incompetency, 139. 
Indentures, 136. 
Indigestion, effects of, 232. 
Individual bargaining, factors in, 321 ; 

definition of, 371. 
Individual records, 327. 
Individual wash bowls, 238. 
Inducements for work, 325. 
Industrial evening schools, evolution 

of, 151 ; kinds of, 151. 
Industrial progress, requisites for, 17. 
Industrial revolution, meaning of,_2; 

changes introduced by, 131. 
Industrial schools, definition of, 152 ; 

characteristics of, 152. 
Industrial system, development of, 3. 
Industrial training, aim in, 31 ; in 

public schools, 151. 
Industry, need of, 122; how to detect, 

123; habits of, 165. 
Inflammable liquids, care of, 291. 
Instincts, definition of, 160; habits and, 

160; characteristics of, 160. 
Insurance, fire loss and, 286. 
Intelligence, need of, in workers, 121. 
Intemperance, a habit, 174; fatigue 

and, 187. 
Inventory, permanent, 59; importance 

of, 61 ; how to take, 61. 
Irregularity, causes for, 80; how to 

treat, 81. 

James, William, 191. 

Job work, how planned, loi. 



Kenlon, John, 303. 

Knocker, avoid a, 121. 

Knowledge, need of, 10 ; prerequisite of 
efficiency, 10; application of, 11; 
requisites for accurate, 12; results of 
accurate, 12; success and, 13. 

Labor, former methods of, 9 ; definition 
of, 23. 

Labor efficiency, requisites for, 114. 

Labor force, an efficient, 107 ; an ideal, 
113- 

Lamps, overhead, 206 ; individual, 206. 

Land, definition of, 22. 

Latent ability, 142. 

Lavatory, old form of, 237 ; dangers in, 
237- 

Leaders unscrupulous, 359. 

Leading, importance of, 75. 

Letters, personal, 120. 

Lewis Institute, 150. 

Light, excessive, 207 ; insufficient, 208. 

Lighting, effects of good, 202 ; natural, 
203 ; artificial, 203 ; methods of 
natural, 204 ; methods of artificial, 
205 ; electric, 205 ; gas, 205 ; injurious, 
conditions, 207; good, a necessity, 
210. 

Limitations of men, 125. 

Living, proper habits of, 171. 

Location, chief factors affecting, 53. 

Lockers, kinds of, 238. 

Loyalty, need of, 73 ; to business, 74. 

Lunches, kinds of, 233 ; employers and, 
233 ; methods to assure proper, 234. 

Machinery, cleaning moving, 269. 

Machines, opposition to new, 362 ; 
effect of, on labor, 362. 

Management, lay methods of, 10; im- 
portance of, 23 ; efficient, 45 ; re- 
sponsibility of, 98; and accidents, 
273- 

Manager, a new official, 3; and sub- 
ordinates, 49. 

Manual alarm box, 300. 

Manual training schools, aim of, 154. 

Manufacturing, evolution of, 2. 



INDEX, 



383 



Markets, importance of, 4; progress 

and, 4; limit specialization, 15. 
Matches, cause of fires, 2g2. 
Materials, economical use of, 57 ; 

storage of, 58. 
Medical department, functions of, 225 ; 

and efficiency, 231. 
Medical examination, need of, 118. 
Memory, fatigue and, 182. 
Mental relaxation, efliciency and, 185 ; 

agencies for, 185. 
Methods of work, the old, 90; best, 91 ; 

of the average worker, 92 ; standard, 

94; adoption of standard, 98. 
Misfits, meaning of, 113 ; evils of, 113. 
Mitchell, John, 359. 
Motion study, definition of, 94; how 

made, 94. 
Moving goods, methods, 60. 

Nerve paths, determination of, 161. 
Nervous system, efficiency and, 117; 

habits and the, 161. 
Noise, fatigue and, 189. 
Nutrition, proper, 231 ; how to assure 

232. 

Oiling, dangers in, 269 ; precautions in, 

269. 
Oil lamp, how to use, 294. 
Oily wastes, dangers in, 290. 
Open places, dangers in, 296. 
Organization, definition of, 45 ; efficient, 

46; holding men in, no. 
Output, increased, and labor, 363 ; 

increased, and wages, 364 ; restricted, 

and labor, 365. 
Overcrowding, dangers in, 310. 

Packing goods, 61. 
Pensions, 247 ; efficiency and, 369. 
Permanence in a working force, 76. 
Personality, importance of, 71 ; of 

doctor and nurse, 230. 
Personal letters, objections to, 120. 
Philadelphia fire tower, 309. 
Physical endurance, requisites for, 

117. 



Physical examination, necessity for, 

226. 
Physical training, importance of, 32. 
Piece rates, definition of, 327; fixing, 

328; under old system, 329; foster 

soldiering, 330; and quality, 355; 

unions and, 369 ; benefit labor, 370. 
Pipe sprinklers, 305. 
Piping, precautions in, 295. 
Planning department, its work, loi. 
Plant location, factors in, 53. 
Plumbing, care in, 239. 
Practice shops, 147. 
Premium wage system, the Halsey, 

340; how it operates, 340; the 

Rowan, 342 ; how it operates, 343. 
Prizes for homes, 248. 
Production, problem in, 4; aim in, 8; 

specialization and, 18; definition of, 

22 ; factors in, 22 ; quality in, 57. 
Profits, cause of, 20; kinds of, 20; and 

health, 200. 
Profit sharing, definition of, 334; 

methods, 334 ; disadvantages of, 336. 
Progress, markets and, 4; elimination 

of work and, 360. 
Promotion, methods of, 77 ; favoritism 

and, 326. 
Promptness, how to encourage, 80. 
Public administration, efficiency and, 

30. 
Pimctuality, how to obtain, 79. 

Quality, standard, 20; in buying, 56; 
in production, 57; piece rates and, 
355- 

Rate cutting, 329. 

Rate fixing, stupidity in, 328; essentials 

for, 331; workers' share in, 33$; 

necessary in some cases, 334. 
Recreation, need of, 186; rooms, 240; 

kinds of, 243. 
Relaxation, efficiency and, 185. 
Reports, requisites for, 49 ; importance 

of, 49. 
Rest, importance of, 95; time for, 

95- 



384 



INDEX 



Restriction of output, methods of, 365 ; 

labor and, 365 ; efiBciency and, 366. 
Richter, M. M., 298. 
Roosevelt, Theodore, 375. 
Routeing, savings from, 61. 
Rowan, James, 342. 
Rowan premium wage system, 342. 
Rubbish, care of, 290. 

Safeguards, necessity of, 265 ; old view 
of, 266; list of, 266; drawing atten- 
tion to, 267; proper time for pro- 
viding, 267 ; workers and, 268. 

Safety devices, effect on workers, 279. 

Savings banks, purpose of, 246. 

Selection, of workers, 116; of ap- 
prentices, 126. 

Self-interest and business, 199. 

Selling, efficiency and, 63. 

Seniority, when recognized, 77. 

Sentiment and business, 199. 

Serfdom, 320. 

Servitude, labor and, 320. 

Shipping, system in, 60. 

Shop instruction, 147. 

Sickness, extent of, 224; drain on in- 
dustry, 225. 

Sight, need for good, 117. 

Sitting at work, effects of, 192 ; where 
possible, 193; not laziness, 193. 

Skill, meaning of, 138; habit and, 159. 

Skilled workers, need of, 106. 

Sleep, effect of, 183; fatigue and, 183; 
habits of, 184. 

Sling-psychrometer, 214. 

Smoking, dangers in, 292. 

Soldiering, evils of, 81 ; elimination of, 
82; science of, 324; piece rates and, 
330. 

Space, proper allowance for, 212. 

Specialization, meaning of, 14; in the 
factory, 15 ; in machines and tools, 
15; effects on labor, 16; dangers of, 
16; progress and, 18. 

Speeding, effects of, 189. 

Spitting, evils of, 239. 

Spontaneous combustion, reasons for, 
288. 



Sprinklers, automatic, 303 ; mechanism 
of, 304; operation of, 304. 

Staircases, wooden, 309. 

Standardization, definition of, 18; 
extent of, 19 ; demands of, 19 ; kinds 
of, 20; a necessity, 62. 

Standards, importance of, 35 ; not per- 
fect, 96 ; changes in, 96. 

Standpipes, 307. 

State and protection of workers, 277. 

Statistics, need of accident, 253. 

Storage of materials, 58. 

Storeroom, location of, 58; arrange- 
ment in, S9 ; records in, 59. 

Stovepipes, how to use, 296. 

Strenuousness, efficiency and, 37. 

Stupidity, fatigue and, 182. 

Success, knowledge and, 13 ; essentials 
for, 46 ; personality and, 72 ; wage 
problem and, 317. 

Suggestions, 50. 

Supervision, importance of, 99. 

Sympathy, its need, 74. 

System, definition of, 46 ; installation of, 
47 ; advantages of, 48. 

Tact, definition of, 123. 

Tardiness, dealing with, 79 ; inefficiency 
and, 78. 

Task, in piece rates, 330; in Gantt 
system, 345; in Taylor system, 350; 
in day work, 352. 

Taylor, F. W., 91, 349. 

Taylor differential piece-rate system, 
requisites for, 349; rate in, 349; 
task in, 350; in operation, 350. 

Temperature, effects of high, 215. 

Thermostats, electrical, 298; pneu- 
matic, 299; installation of, 299. 

Thrift, advantages of, 122. 

Time, wastes of, 36; causes for wasting, 
323- 

Time study, meaning of, 94 ; how made, 
94. 

Time wages, how fixed, 321 ; disad- 
vantages of, 322; foster soldiering, 
323; and individual records, 327; 
remedying faults of, 327. 



INDEX 



38s 



Tobacco habit, 175. 

Toxic impurities, definition of, 178; 

effects of, 181; power to resist, 180; 

how disposed of, 182. 
Trade preparatory schools, definition 

of, 154; work of, 154. 
Trade schools, definition of, 152 ; re- 
quirements of, 153 ; supervision of, 

153- 
Trade unions, definition of, 35g; and 

piece rates, 360; and premium 

systems, 372 ; aims of, 373. 
Training, physical and moral, 32 ; long 

neglected, 132; importance of, 133; 

in best methods, 139; and fatigue, 

191. 

Uncertainty of a new worker, 108. 
Utility, definition of, 22 ; varieties of, 
22. 

Vacancy, how to fill, 114. 

Vacations, 247. 

Ventilation, definition of, 211 ; natural, 

211; artificial, 211; methods of, 212. 
Vocational schools, purpose of, 154; 

importance of, 154. 

Wage bargaining, forms of, 371. 
Wage problem, solution of, 315; 
parties to, 316; success and, 317. 



Wages, earning of, 318; time, how 
fixed, 321 ; disadvantages of time, 
322 ; how to increase, 326. 

Wage system, a proper, 318; early 
appearance of, 320; restrictions, 
321. 

Waste products, savings from, 58. 

Wastes, extent, s; how to reveal, 29; 
in public administration, 30; in 
educational system, 31 ; kinds of, 
35 ; in buying, 35 ; in using materials, 
35; of time, 36; of energy, 36; from 
soldiering, 81; from ignorance, 139; 
from poor habits, 166; from fatigue, 
195- 

Water, drinking, 234-236; in air, 
215. 

Welfare work, importance of, 241; 
varieties of, 242; how to manage, 
242. 

Windows, benefits from, 204. 

Wiring, precautions in, 294. 

Work, old methods of doing, 90; one 
best way of, go; reasonable day's, 
92; qualifications for eiEcient, 116; 
limits of, 190; elimination of, and 
progress, 360. 

Worker methods of average, 92 ; the 
efficient, 132; his work, 194; and 
safeguards, 268. 

Working day, length of, 190. 



2C 



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By NORRIS a. BRISCO, Ph.D. 

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Business 
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An Analysis of the Evolution and Nature of Business Organization in the 
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Professor of Economics in the University of Texas. Author of" A Con- 
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Cloth, 8vo, ^2g pages, $2.00 nei 

Dr. Haney in his treatment of business organization recognizes 
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EXTRACT FROM PREFACE 

During the last two or three years while the editor of this volume was giv- 
ing careful study to the subject of Trusts, he became more and more forcibly 
impressed by the need of a presentation of the subject that should be strictly 
impartial, that should advocate no theories, but yet should present the prob- 
lems that arise in relation to Trusts comprehensively, and as they are. The 
realization of this need was increased by the fact that a large number of 
writers have shown the disposition to confuse the problems to which the 
Trust gives rise, with those that develop in connection with corporations 
and large scale production. 

The publication of the Steel and Interstate Commerce Committee Inves- 
tigations bridged many of the chasms which, in the opinion of the editor, lay 
in the way of a satisfactory treatment of the subject from source material. 
Thereupon it was decided to attempt the present volume, a book that should 
not give the reader a second hand knowledge of the Trusts, but which 
should place before him the original documents themselves : pooling, 
Trusts, factors and international agreements; court decisions and laws 
against Trusts ; Trust methods of fixing prices, eliminating competition and 
restraining trade ; the dissolution plans of dissolved Trusts ; lease and 
license agreements of representative patent monopolies ; and the views of 
eminent business and professional men as to the proper methods of hand- 
ling this gigantic problem. 

Throughout the preparation of the volume two purposes were held steadily 
in mind. The first was to design a volume that should place within the 
reach of the students in courses in Trusts in our colleges and universities, 
material of which much is, as the editor knows from personal experience, 
only too often difficult of access or else altogether unavailable. The second 
purpose of the editor was the collection of such a set of materials as would 
afford the ordinary reader who chances to be interested in Trusts, a fair 
knowledge at first hand of the historical development of the Trust move- 
ment in the United States, and a thorough comprehension of those problems 
in regard to them that the country is facing to-day. 

" The author has performed a distinct public service in making available 
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